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Due to the high stakes that may be attached to placement decisions, it is imperative that the placement process be as solid and defensible as possible. An integral part of the placement process is the identification and use of cut scores, the point(s) on the score scale that classify students into adjacent categories for placement decisions. This paper is geared toward helping college administrators make valid decisions regarding setting cut scores, focusing particularly on selecting a method, but also discussing issues such as defining performance levels and validating the process.