Imagine you and all your friends in school took a test. A norm-referenced test is a type of test that compares how well you did on the test to how well your friends did.
For example, let's say you got 18 out of 20 questions right on a math test. That's pretty good! But if most of your friends got 19 or 20 questions right, then your score might not look as good compared to theirs.
The point of a norm-referenced test is to see how you measure up to other people who took the same test. It can help teachers and other grown-ups figure out how well you're doing in school compared to your peers.
So basically, norm-referenced tests are like a big test for a group of people, and it helps grown-ups figure out who is doing well and who might need some extra help.