After the test the point average and standard measuring error are calculated. Afterwards a list of student level of success is made according to the number of points and in accordance with the previously defined percentage of those who will pass, a minimum test score is determined and the prearranged level is "cut off".

Significant downside of this approach is the fact that a certain percentage of students will not pass the test (even if all of them solved it excellently) or in a different situation, a previously defined percentage of students will always pass the test, even if none of them was really ready to take it!
This assessment model is partly applicable only if all the students prepared for an exam seriously. But since in real life that is rarely the case, relative grading should be abandoned!

  Absolute grading  

With absolute grading, the knowledge of every student is compared with previously defined standard knowledge. This previously defined standard knowledge can be set using the method of subjective or objective absolute standard.

 Subjective Absolute Grading Standard

Subjective absolute standard can be a stable standard test difficulty, achieved through the experience of a professor who selects questions for standard test difficulty from a large base guided by their "feeling and experience". On such uniform tests students who answer a certain number of questions (usually 55%) will pass. The downside of this approach lies in the professor's subjectivity when defining the test difficulty.

 Objective Absolute Grading Standard

Objective absolute standard is achieved by evaluating the difficulty of the whole test based on difficulty evaluation of each question. Evaluation scale is then adjusted to the calculated difficulty. For "difficult" exams minimum required score is low, while for the "easy" it is high. Whether a student will pass the test or not no longer depends on the success (knowledge) of other students (like with relative evaluation), or the professor's assessment about the level of test difficulty. It depends strictly on the correlation between the student's knowledge and the absolutely adopted criteria of the professor about the minimum knowledge level needed to pass the test. Every question should be evaluated by a board of at least 3 professors. Each member of the board independently determines the so called minimum required score (MRS) for each question. After developing the test, the professor should determine the average minimum required score for the whole test and calculate the evaluation scale.