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GMAT Prep Guide- How the GMAT CAT Works  
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The GMAT is now only available as a computerized test. Instead of having a predetermined mixture of easy, medium, and hard questions, the computer will select questions for you based on how well you are doing. The first question will be of medium difficulty (500 level questions are halfway between 200 and 800). If you get it right, the second question will be selected from a group of questions that are a little harder; if you get the first question wrong, the second question will be a little easier. The result is that the test is self-adjusting and self-correcting to your skill level.

GMAT Prep Guide: If graphic doesn't load, press shift-refresh in your webbrowser to reload the page.
Fig. 1.1 This graph shows how the test keeps a running score of your performance as you take the test. The student's running score goes up after getting the first three questions right (blue) and the score goes down when the test taker gets questions wrong (red) (questions 4 and 5 on lower axis). As the test progresses, the swings caused by getting a question right or wrong progressively decrease.

 

Harder Questions Count More

A result of the CAT format is that the harder problems count more than easier ones. If one student does twenty easy questions, half of which he gets right and half of which he gets wrong, and then another student does twenty very difficult questions, half of which he gets right and half of which he gets wrong, the second student who did the very difficult questions will get a higher score.

The student who answered ten out of twenty very difficult questions incorrectly would still get a very high score on the GMAT CAT because the harder questions are more heavily weighted. Simpler questions might be easier to answer, but they count much less. Your goal should be to get as many hard questions right because that will get you your highest possible score.

GMAT Scores and B-School

GMAT Pacing Strategies