The style of test that adjusts the level of difficulty based on the candidate's response is called:

The style of test that adjusts the level of difficulty based on the candidate's response is known as a computer-adaptive test. In this format, the testing algorithm evaluates the test-taker's answers in real time and modifies the difficulty of subsequent questions accordingly. This means that if a candidate answers a question correctly, they are presented with a harder question, and if they answer incorrectly, they may receive an easier question.

This approach allows for a more tailored assessment of a candidate's ability, enabling the test to effectively measure a wider range of skill levels within a shorter time frame. It helps ensure that the test remains challenging and engaging, while also accurately reflecting the test-taker's knowledge and skills.

Other testing formats, such as linear tests, do not adjust based on performance and present a fixed set of questions. Performance-based tests evaluate practical skills in real-world scenarios, and standardized tests are designed to measure specific learning benchmarks across large groups, but neither of these employs the adaptive methodology employed in computer-adaptive tests.