Norm-referenced tests (or NRTs) compare an examinee’s performance to that of other examinees. Standardized examinations such as the SAT are norm-referenced tests. The goal is to rank the set of examinees so that decisions about their opportunity for success (e.g. college entrance) can be made.
Criterion-referenced tests (or CRTs) differ in that each examinee’s performance is compared to a pre-defined set of criteria or a standard. The goal with these tests is to determine whether or not the candidate has the demonstrated mastery of a certain skill or set of skills. These results are usually “pass” or “fail” and are used in making decisions about job entry, certification, or licensure. A national board medical exam is an example of a CRT. Either the examinee has the skills to practice the profession, in which case he or she is licensed, or does not.