The grading method in testing has 2 options: Raw and Cut Score Based Grading.
Raw Score-Based Grading: Raw scores are a straight percentage of questions answered correctly. Example: 7/10 is 70%.
Cut Score-Based Grading: Cut scores take into account the difficulty of the material being tested on and students' grades accordingly and are a far more accurate representation of student competency levels.
Note: This setting can be changed anytime by editing the class through your administrator role in Testing.