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In this study, we examined the function of peak phasic electrodermal activity (EDA), a key indicator of sympathetic nervous system reactivity, and self-reported nervousness in relation to students’ item-specific self-efficacy and performance during a practice exam. We found that nervousness on the prior question may influence performance through its positive relation with self-efficacy during the subsequent question. Additionally, we found that nervousness is most strongly influenced by prior performance and protected by prior self-efficacy. Conversely, EDA had a negative influence on subsequent performance both directly and indirectly through the negative influence on subsequent self-efficacy. These findings demonstrate the complexity of students’ emotional response in performance settings, the implications of those responses for their performance, and provide opportunities to develop targeted interventions.