Why did Allah created this examination?

If Allah knows everything about future and He knew what would happen even before we were created why did He created this examination?

Answer:
In the name of Allah the most Gracious most merciful.
Do you know, with a very simple argument this question can be nullified ?

Every machine manufacturer knows what his machine will do before manufacturing it.

If so, why he should manufacture a machine which will end up in certain period ?

And how is it possible that a Car manufacturer knows the performance of His Car before manufacturing it ?

See how in a very simple way the question is nullified.

But, still I would like to address the issue with the help of Allah The Almighty.

I would like to repeat a Verse from my answer to your previous Question.

“And [mention] when your Lord took from the children of Adam - from their loins - their descendants and made them testify of themselves, [saying to them], "Am I not your Lord?" They said, "Yes, we have testified." [This] - lest you should say on the day of Resurrection, "Indeed, we were of this unaware."
(Glorious Quran, Al-Araf, 7/172).

Addition to the above verse, I have chosen the best verse from the Quran, which should make every human to ponder on.

“Lo! We offered the trust unto the heavens and the earth and the hills, but they shrank from bearing it and were afraid of it. And man assumed it. Lo! he hath proved a tyrant and a fool.”
(Glorious Quran, Al-Ahzab, Chapter #33, Verse #72)

Now it should be very clear that, the trial of life we are living is chosen by our self and we are the one fools and failing.

Let me address your Question now directly.

There is a School (Example) Only one Professor (Teacher ) teaching all students for every year, after 15 or 17 years, the time to decide their status of studies.

Now, not to mention, the Professor (Teacher ) knows very well about his every student in last 15 to 17 years, what each has gained, what is each one’s level. He knows, if a examination is made for students, who will succeed in the examination and who will fail !

He is Just their Professor (Teacher ), though, he knows exactly who will perform what !!!

Now even though Professor (Teacher ) knows the future of his students, is it advisable to Grant Certificate of Success or Fail without holding any Examinations ?
Anybody will say, not fair.

What is then strange if our Creator knows exactly what we will Perform as He is the one fashioned everything in us. And, by knowing what we will perform, do our performance change? Does any misfortune take over our performance? Never, it is not at all logic. I will say it is a benefit for us.

Allah clearly stated in Glorious Quran ( read carefully the words changed to Capital)

“No misfortune can happen on earth or in your souls but is recorded in a decree before We bring it into existence. That is truly easy for Allah. In order that YOU MAY NOT DISPAIR over matters that pass you by, not exult over favors bestowed upon you. For Allah loves not any vainglorious boaster…” (Glorious Quran, al-Hadid: 22-23)

Now the below verse makes it clear, we are not forced to believe or disbelieve.

“And had your Lord willed, those on earth would have believed - all of them entirely. Then, [O Muhammad], would you compel the people in order that they become believers?” (Glorious Quran, Yunus: 99)

And the next verse is very interesting.

And it is not for a soul to believe except by permission of Allah, and He will place defilement UPON THOSE WHO WILL NOT USE REASON.
(Glorious Quran, Yunus: 99-100)

It means, those who want truth, they will only receive it.

After getting the answer, now we should conclude:

On the human freedom and responsibility read the following verses:

“Whatever misfortune befalls you is the consequence of what your own hands have wrought. And Allah forgives many of your sins.”
(Glorious Quran, ash-Shura: 30)

“That is so because Allah will never change a Grace which He has bestowed on a people until they change what is in their ownselves. And verily, Allah is All-Hearer, All-Knower.”
( Glorious Quran, , Al-Anfal, Chapter 8, Verse 53)

“Every person stands pledged for what he has earned.”
(Glorious Quran, at-Tur: 21)

“Neither according to your desires, nor according to the desires of the People of the Book, whosoever will do evil will be requited accordingly and shall not find beside Allah any protector or helper. If any do deeds of righteousness, be they male or female, and have faith, they will enter heaven and not the least injustice will be done to them.” (Glorious Quran, an-Nisa’: 123-124)

“It is the truth from your Lord; wherefore let his who will, believe, and let him who will, disbelieve.” (al-Kahf: 29)

“Indeed Allah does not wrong the people at all; it is they wrong their own selves.” (Glorious Quran, Yunus: 44)

“There is no compulsion in religion. Surely the right way has become distinct from error.”(Glorious Quran, al-Baqarah: 256)

Hope it answers the question. Finally Allah knows the best.
May Allah help us to understand his revelation.
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{Answered by: Mohammed Hussain Assadi for the question asked in face book groups. This answer is copy right free, any one can copy and re post or share this post directly to the question.}
Jazak Allah Khair.