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Items on norm-referenced tests need to discriminate between high and low performers because those tests are generally used to make aptitude, proficiency or placement decisions. Criterion-referenced tests, in contrast, are used to measure mastery of specific material and the goal is success for all students.
Well-known examples of criterion-referenced tests include Advanced Placement exams and the National Assessment of Educational Progress, which are both standardized tests administered to students throughout the United State
Norm-referenced refers to standardized tests that are designed to compare and rank test takers in relation to one another. ... Norm-referenced scores are generally reported as a percentage or percentile ranking