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In Classical Test Theory, the True Score of a test is the score that perfectly reflects the real ability or trait of the individual, without any error. Its significance lies in providing an ideal measure that test scores aim to approximate.

Error Score is the component of a test score that does not represent the true ability of the individual, arising from various inconsistencies and inaccuracies in the testing process. It highlights the imperfections inherent to psychological assessments.

An Observed Score is the actual score obtained on a test. According to Classical Test Theory, it is the sum of the True Score and the Error Score. The observed score is critical in understanding the deviations from the true ability.

Reliability refers to the consistency and stability of test scores over time and different contexts. High reliability suggests that the test consistently measures the same construct with minimal error. It is significant for ensuring test score credibility.

Validity is the extent to which a test measures what it purports to measure. It encompasses several types, including content, construct, and criterion-related validity, and is crucial for the test's accuracy and meaningfulness.

The Standard Error of Measurement (SEM) quantifies the amount of error expected in test scores due to measurement imprecision. It is used to create confidence intervals for true scores and is significant in interpreting test results.

In test theory, Item Difficulty pertains to the ease with which test-takers can answer a given question correctly. It's crucial for test design, ensuring that items discriminate effectively across different levels of ability.

Item Discrimination indicates how well an item distinguishes between individuals who have differing levels of the trait being measured. It's important for creating tests that are sensitive to differences in abilities.

Test-Retest Reliability measures the consistency of test scores across multiple administrations over time. If scores are similar over time, the test is said to have high test-retest reliability, which is fundamental for temporal stability.