What is the key characteristic of norm-referenced exams?

Norm-referenced exams are specifically designed to rank students based on their performance in relation to one another. This means that the primary focus is on comparing individual scores to those of a defined group, typically a representative sample of peers. As a result, the scores are interpreted in terms of how a student performed relative to that group, which determines whether they scored above, below, or at the same level as others.

This comparative framework is essential for understanding individual performance in context and is often used to identify relative strengths and weaknesses among students. It is particularly useful in competitive environments where placement or selection is involved, such as in college admissions or gifted programs.

While other options highlight aspects related to assessments—such as measuring against a standard or involving subjective grading—these are more characteristic of criterion-referenced or subjective evaluations, respectively. The statement about norm-referenced exams being limited to standardized testing does not encompass their broader application in educational assessment.