The norm-referenced grading system evaluates a student's performance relative to other students in the class. A student's score is converted to a percentile rank based on how it compares to all scores. For example, a student who scores in the 80th percentile performed better than 80% of students. The system curves grades so a set percentage of students receive each grade. It advantages include ease of use and limiting advanced students. Disadvantages are performance depends on peers and it promotes competition over cooperation.