Mathematical literacy assessment should capture students’ capacity to use mathematics in meaningful situations while maintaining sound measurement quality. This study aimed to develop and empirically evaluate an algebra-based mathematical literacy assessment for Grade VIII students that incorporates individual and Acehnese cultural contexts across different items within a single instrument. A Research and Development approach was employed using Tessmer’s formative evaluation framework, comprising preliminary analysis, self-evaluation, prototyping, and field testing. The one-to-one evaluation involved 6 students, the small-group evaluation involved 34 students, and the field test involved 128 students from four junior secondary schools in Banda Aceh. The final instrument consisted of 13 multiple-choice items, including 5 individual-context items and 8 Acehnese cultural-context items, and was evaluated through expert judgment and classical item analysis using ITEMAN. Expert validation yielded an overall mean score of 4.40, indicating strong content and contextual appropriateness. Field-test results showed that all 13 items were retained, with point-biserial coefficients ranging from 0.299 to 0.609 and an alpha reliability coefficient of 0.712. Item difficulty analysis identified 11 moderate items, 1 easy item, and 1 difficult item, while discrimination analysis classified 10 items as very good, 2 as good, and 1 as fair. Of the 39 distractors, 38 (97.44%) functioned effectively, while student responses indicated good attractiveness (71.1%) and usefulness (79%) and moderate perceived difficulty (55.6%). These findings indicate that individual and Acehnese cultural contexts can be systematically represented across an algebra-based mathematical literacy assessment while maintaining acceptable psychometric characteristics and favorable responses from the participating students.
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