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For example, the criterion may be "Students should be able to correctly add two single-digit numbers," and the cutscore may be that students should correctly answer a minimum of 80% of the questions to pass. The criterion-referenced interpretation of a test score identifies the relationship to the subject matter.
Norm-referenced assessment can be contrasted with criterion-referenced assessment and ipsative assessment. In a criterion-referenced assessment, the score shows whether or not test takers performed well or poorly on a given task, not how that compares to other test takers; in an ipsative system, test takers are compared to previous performance.
Criterion-referenced assessment is often but not always used to establish a person's competence (whether he/she can do something). The best-known example of criterion-referenced assessment is the driving test when learner drivers are measured against a range of explicit criteria (such as "Not endangering other road users").
A criterion-referenced test is an achievement test in a specific knowledge domain. [1] An individual's performance on the test is compared to a criterion. Test-takers are not compared to each other. A passing score, i.e., the criterion performance, is established by the teacher or an educational institution.
A norm-referenced interpretation means that the score conveys meaning about the examinee with regards to their standing among other examinees. A criterion-referenced interpretation means that the score conveys information about the examinee with regard to a specific subject matter, regardless of other examinees' scores. [2]
Criterion-referenced score interpretations are concerned solely with whether or not this particular student's answer is correct and complete. Under criterion-referenced systems, it is possible for all students to pass the test, or for all students to fail the test. Either of these systems can be used in standardized testing.
An example of an absolute, or criterion-referenced, decision would be when an individual's test score is compared to a cut-off score to determine eligibility or diagnosis (i.e. a child's score on an achievement test is used to determine eligibility for a gifted program).
Compared to a multiple-choice, norm-referenced test, a standards-based test can be recognized by: A cut score is determined for different levels of performance. There are no cut scores for norm-referenced tests. There is no failing score on the SAT test. Each college or institution sets their own score standards for admission or awards.