curtailed, lost, ruined, squandered, nullified, wasted, rendered ineffective...
These verbs both mean to put someone or something in the place of another. To replace is to be or to furnish an equivalent or substitute, especially for one that has been lost, depleted, worn out, or discharged:
To replace:
to provide a substitute for (something broken or unsatisfactory, for example) - AHDEL
To substitute:
To put or use (a person or thing) in place of another - AHDEL
While the two are synonyms, replace does carry a stronger connotation of being long-term.
The etymology of substitute, particularly the prefix "sub" may suggest why it has a weaker connotation of being permanent:
Origin
late Middle English (denoting a deputy or delegate):
from Latin substitutus 'put in place of',
past participle of substituere,
sub 'under + statuere 'set up'.
Substitute is rendered from it's Latin origin: "set up under"
PREFIX
1 At, to, or from a lower level or position:
subalpine
1.1 Lower in rank:
subaltern
subdeacon
Although permanent replacement is CURRENTLY an acceptable use of substitute, it's original use was closer to "deputy". A substitute would stand in for the principle as a duputy:
- a deputy "replaces" the sheriff who ordered him to execute the warrant
- the corporate vice-president "replaces" the president who is out of town
- margarine "replaces" butter when it is not available
- a temp "replaces" the secretary while she is on vacation
Each of those "replacements" is temporary because the principal remains available "above" her substitute.
Edited to add: As @John Lawler points out, they are the same but serve opposite rhetorical functions: he replaced 'old' with 'new'; he substituted 'new' for 'old'.
Best Answer
To me, "wrote the test" implies he took the test, not that he developed or otherwise created the test. "Compiled" implies he put the test together from previously existing questions. I'd take "designed" to refer to the test format or typeface or possibly intent, not necessarily the content. "Prepared" implies involvement with content, but not necessarily creation: he might have revised a test from last year. So if you mean that he created a new test specifically for a particular use, then "developed" seems closest.