How This Chess ELO Test Works
You begin at 1200 and play rated games against an AI opponent pitched 200 points above your current rating. Each result updates your number with the standard ELO formula and the K-factors FIDE uses for tournament play, so the rating you end up with is arrived at the way a real one would be: by results against known opposition, not by a questionnaire.
The opponent sits deliberately above you because an evenly matched game carries little information. Playing someone slightly stronger produces a more revealing spread of wins, losses and draws, which makes your rating converge faster.