Final answer:
Norm-referenced tests are designed to compare individuals to a norm group based on collected data, providing a way to interpret individual scores in relation to others' scores.
Step-by-step explanation:
The tests that compare individual students with others in a designated norm group are referred to as norm-referenced tests. These tests are designed in such a way that the scoring, and interpretation of results is consistent across those who take the test.
Norming involves administering the test to a large and often diverse group of individuals to collect comparative data. This group should be a representative sample of the population for which the test is intended.
In education, this practice dates back to the development of the Stanford-Binet Intelligence Scale which established norms based on age groups and other demographic factors. Norms provide a reference point for interpreting individual scores and are indicative of what a group does know, rather than what they should know.
In practical applications, norm-referenced tests are used in various settings, such as comparing students' academic abilities, evaluating the effectiveness of educational interventions, or comparing the performance of different demographic groups.
The goal is not to measure against a fixed standard of performance, but rather to see where a student stands in relation to their peers—a method that can identify relative strengths and weaknesses.