The problem is that "ObjectDisplay > Diagnostic Shading" is not available at all. The only choices I have under ObjectDisplay are: Control, Visible, Invisible, Toggle Visibility, Hide Unselected, and Draw Precision. I've tried looking at every pull-down on the tool bar and can't find anything about Diagnostic Shading.
The only workaround I've found has been to use the Visualize Panel and apply render shaders that way. Is this a limitation of Alias Design as compared to Surface or a change from 2012 to 2013 or do we just have a problem with our installation? Thanks.
Nevermind, I fell into another one of those newbie pit traps. Preferences> Menus> Short Menus was selected (because a previous lesson had us do that). And it of course removes many of the menu selections from view. Everything's good now.