Every Wrong Answer Counts: Option-Level Psychometrics for LLM Multiple-Choice Benchmarks

Most multiple-choice question (MCQ) benchmarks evaluate Large Language Models (LLMs) only by whether they select the correct answers. This binary scoring treats all incorrect responses alike, even though an LLM's preferences among incorrect options may contain systematic and useful information about its behavior and ability. We introduce the LLM Nominal Response Model (LLM-NRM), an option-aware psychometric framework that models the full distribution over answer choices to jointly estimate LLM ability and option-level item characteristics, while separating model-specific response calibration sharpness, positional preference, and difficulty-dependent fallback behavior. Across 189 LLMs and 31,554 items from 14 benchmarks, LLM-NRM predicts held-out LLM-item interactions more accurately than binary Item Response models and conventional nominal-response baselines, and its ability estimates achieve the strongest Spearman correlation of 0.920 with the external human-preference Arena.ai Elo leaderboard. Distractor identity contributes +101% additional Fisher Information per item beyond correctness, and incorrect responses alone recover full-information ability estimates with Spearman 0.943. The learned item parameters also enable efficient benchmarking, where 41 selected items preserve the full-bank ranking with Kendall's correlation 0.85, corresponding to a 770 times reduction. In conclusion, we show that incorrect answers carry distinct and useful measurement information rather than representing equivalent mistakes.

Laplace-PSN-IRT: Uncertainty Quantification for Neural Item Response Theory Models of LLM Benchmarks

Item Response Theory (IRT) has recently been proposed as a framework for evaluating large language model (LLM) benchmarks by separating a model's latent ability from the properties of individual benchmark items. Existing neural IRT approaches, including PSN-IRT, estimate these quantities using point estimates, limiting uncertainty quantification and downstream statistical inference. We introduce Laplace-PSN-IRT, a post-hoc last-layer Laplace approximation that augments a trained PSN-IRT model with approximate Bayesian posterior inference, recovering calibrated uncertainty over model ability and item difficulty without retraining. The resulting posterior enables credible intervals, probabilistic comparisons between models, and propagation of parameter uncertainty into Fisher-information-based item selection. We show that most pairwise comparisons among 12 models on a standard LLM benchmark leaderboard are not statistically distinguishable despite differing point-estimate ranks. We further show that point-estimate Fisher information can become nearly zero for many benchmark items because it is evaluated at a single reference ability, whereas posterior-expected Fisher information remains substantially more stable across the ability range. Finally, posterior-expected Fisher information more accurately recovers full-benchmark ability rankings from small benchmark subsets in most experimental settings while matching point-estimate performance for the smallest subsets. We validate the calibration of the approximate posterior using held-out predictive coverage and find that modeling item difficulty as random while treating item discrimination as fixed produces well-calibrated uncertainty in this architecture.

From Text to Parameters: Predicting Item Parameters from Embedding Regularization with Reliability and Design Ceilings

Newly developed items must ordinarily be field tested before their psychometric properties are known, creating a cold start problem for item calibration. Predicting item parameters from features is a long standing measurement problem dating back to the Linear Logistic Test Model; modern text embeddings now automate the design matrices traditionally specified by hand. We propose an evaluation framework combining regularized regression on item text embeddings, repeated cross validated R squared reported with its resampling standard deviation, and two performance upper bounds: a reliability ceiling derived from parameter standard errors, and a design ceiling derived from simulation based power calibration. Applying this framework to a mathematics item bank (EEDI) and a medical licensure benchmark (BEA 2024), we find that item difficulty is highly predictable from text (repeated cross validated R squared = 0.53, or about 57% of its reliability ceiling), whereas discrimination and pseudo guessing appear less predictable. However, evaluating these results against our ceilings reveals that this apparent hierarchy stems from target reliability rather than text signal strength: text uniformly recovers 57 to 63% of the reliable variance across difficulty targets, whereas the 3PL pseudo guessing parameter has a reliability ceiling near zero, making it an unviable target at current precision. On BEA, embedding based regression matches leaderboard RMSE despite explaining almost no variance, highlighting the critical need for scale free metrics and explicit ceilings in benchmarking. Finally, we show that a single train and test split can inflate apparent accuracy by 0.1 to 0.15 in R squared, underscoring the necessity of repeated cross validation for calibration support applications and future benchmark construction.