The Measurement and Evaluation Center of the University of Texas (Austin) conducted a validity study to assist the Department of Management Science and Information (DMSI) at the College of Business Administration in establishing a program of credit by examination for an introductory course in electronic data processing--Data Processing Analysis 310 (DPA 310). The course is required for business administration students; however, the DPA 310 course may repeat material that some students already know. The DMSI wanted to offer incoming students a test suitable for placement of computer-literate college students out of the course. The project was conducted during the 1987-88 academic year, and involved assessment of a 142-item multiple-choice test--the U.T. Austin Test for Credit in DPA 310. The test covered word processing, electronic data processing, computer systems, the electronic spreadsheet, databases, programming, artificial intelligence, use of computers in offices, and other topics. It was administered to 1,142 students who had taken the course during the fall of 1987. During mid-January 1988, the DMSI selected a minimal test score to place students out of the course and to award three hours of credit by examination to passing students. The first use of the test as a credit by examination instrument resulted in eight of the 63 examinees achieving scores at or above the decision score selected by the DMSI. Six of the eight who were eligible for credit would receive a grade of "C" and two a grade of "B." Five data tables are included. A Student Information Handout and the frequency distribution of scores received from first administration of the test are appended. (TJH)