I strive to use real data, as opposed to hypothetical or realistic data, in exam questions. I can't honestly say that I start with a real problem, though. I usually start with the concept or technique or issue that I want to ask about, and then I find real data that can be used to assess students' knowledge of that issue.

I try to assign points to questions based on how many different components comprise the question. My aim is for at least 50% of the points to be based on conceptual understanding and interpretations as opposed to calculations and mechanics.

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