Grading in university is different from highschool in that your performance is always either measured against your 1) classmates or against 2)historical performance in the class.
So basically,
1. Being measured against your classmates is where the class is "curved". Simply put this makes it so your grade depends on the class average, it depends on the prof but typically a B grade will be assigned to those with a grade within 1 standard deviation of the class average. Those one standard deviation higher will be assigned a B+ and then one standard deviation higher than that is an A-, etc. etc. The same applies for lower marks where 1 standard deviation lower than the average gets a B- and continuing downwards.
For example(just made up numbers), in a particular class the average may be 70% with a standard deviation of 6%. Those at 67%-73% are given a B grade. Those at 74%-80% are given at B+, those at 81%-87% get an A-, those at 88%-94% get an A and 94%+ get an A+. Assigning grading brackets according to standard deviation is not a hard and fast rule however, it depends on the prof, the number of people in the course, alot of different factors. Std. Dev. wil always be considered however.
The main exception to this curving is profs may set a course minimum % necessary to pass, ie) 40% or 50% or whatever the prof decides may be the bare minimum necessary to pass no matter what the class average is.
2. Graded historically means the prof assigns your grade according to how people have done historically in the course. If typically over the last few years classes get an average around 70% that means you can typically expect a B grade to be assigned to people around that %. Now this may sound similar to curving according to the class average but the main difference is the grade brackets don't take in to consideration what your current years standard deviation is.
Now you may take smaller classes with 20-25 people and typically those classes will have a hard set distribution for the grades(like high school) simply b/c the class size is too small to assign any sort of curve. Historical average may still be taken into account when assigning the grade brackets but you'll never see a curve in smaller classes of 25ish or less people.
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