@cynthia_londeor I don't have much experience with linking outcomes to classic quizzes. I was not aware that they were already able to be linked to individual questions before new quizzes. I have used outcomes as criteria in assignment rubrics, however. The outcome is separate from the student's grade. The score on the assignment is based on student success on the overall rubric, which typically includes multiple criteria none, some, or all of which may be linked to an outcome. The outcomes then use only the one criteria from that rubric for a score, and then if the same criteria is repeated in later rubrics there are several options for how the multiple scores are combined. Decaying average is only one of those options. The others are described here: https://community.canvaslms.com/t5/Instructor-Guide/How-do-I-manage-outcome-mastery-calculations-in-...
In general, I think of outcomes as the larger objectives from the institution or specific to the course. Those objectives are aligned to what we measure in individual assignments, but unless you are teaching a competency based course, the objectives do not replace a grade.
The student who had a mastery of 1.2 for missing 2 out of 3 questions would only have a 1.2 in the learning mastery gradebook, while the regular gradebook is assignment based and so it would record a score of 0.33 as the result of only getting one out of 3 questions correct. If a student skips a question, it counts as a wrong answer in a quiz, and likely also in any aligned mastery, but quizzes a student has not yet taken should not be influencing the mastery levels at all.
That 1.2 would be from that specific quiz, and not from the entire course. The same objective can be linked to other quizzes and assignments so that later success at that skill can pull up the student's mastery level for the objective without impacting the student's prior grades on previous assignments which are individually recorded in the regular gradebook.
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