Magnitude squared coherence is a method of auditory evoked potential (AEP) frequency-domain analysis, measuring the degree to which the AEP is determined by the stimulus as a function of frequency. In 10 normal-hearing human subjects, scalp responses to an amplitude-modulated (AM) tone (500 Hz carrier modulated with a 40 Hz envelope) were recorded. Critical value criteria were utilized in the statistical analysis of coherence-intensity functions for determination of threshold responses. When compared with subjective determination of AEP threshold from time-domain waveforms, coherence analysis provided a significantly (p less than 0.001) more sensitive threshold measure. Coherence analysis provides information on the spectral content of the response, and allows for the objective determination of threshold which may potentially be utilized in a more expeditious threshold measurement scheme.