This document discusses item analysis, which is a statistical technique used to select and reject test items based on their difficulty and discrimination. It outlines the objectives, steps, and formulas for calculating an item's difficulty value and discrimination index. The objectives are to select appropriate items, obtain difficulty values, provide discrimination between more and less capable examinees, and modify items as needed. Steps include arranging scores and separating groups, then calculating the difficulty value and discrimination index using provided formulas. Guidelines are given for interpreting difficulty values and discrimination indices to evaluate item quality.