Hope you've been doing well Brian!
This is a technical discussion that won't be of interest to test takers:
VeritasPrepBrian
Regarding the penalty for omitting questions, it's proportional...but the proportion is taken off of a score (your "theta estimate") that only the algorithm sees before it converts it to your scaled score. So essentially if you leave 3 of the 37 quant questions unanswered, your quant theta score will get multiplied by 34/37, and then that adjusted theta will be converted to your scaled score.
I've always been curious about this. There's confirmation from a couple of sources from years ago that the penalty is proportional, so some "score" is being reduced by k/37 when you leave k questions unanswered at the end of the Quant section. But it's never been clear just what "score" is being penalized - the scaled score, the percentile, the theta score, or some other interim score? I just discovered your Lawrence Rudner interview videos (which are great, thanks for those!), but before seeing those interviews, the only numerical data I could find about the penalty was in the
OG, in one of those "Myth vs Fact" bubbles (on pg 13 in OG2018). There, the book explained that five unanswered questions in Verbal would reduce a Verbal score from the 91st to the 77th percentile. If you go back to the percentile tables when that blurb was first published (they haven't updated the numbers in that fact bubble since, so in later
OG editions those percentiles often don't match any specific Verbal score), those percentiles corresponded to the scores V41 and V36. So I've always assumed, without being certain, that the penalty was applied to the scaled score, because in the
OG example, with five unanswered questions, (36/41)*41 is indeed equal to 36.
After watching your second interview video, I'm still not sure what to think! Rudner first says that the penalty is applied to an "interim score", but later talks about applying the penalty to the scaled score ("your scaled score will go from 39 to 88% of 39, which is 34"). I don't think it's possible that the penalty is applied directly to the Theta value, because an average Theta value is 0 (and a below average value is negative), and applying any proportional penalty to a score of zero wouldn't change the score at all. My hypothesis now is that the "interim score" Rudner refers to is the scaled score, but before it is rounded off to the nearest integer. So someone might leave two Verbal questions unanswered, and have an unrounded scaled score of, say, 33.47 in Verbal, and the penalty would produce a score of (39/41)*33.47 = 31.84, which would become a V32. But I still can't be sure that's right.