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Normative data is crucial because it provides a baseline or standard against which individual scores or performances can be compared. This data helps in understanding how an individual or a group's performance relates to that of a larger population, facilitating informed decisions in areas such as education, healthcare, and psychology. It also aids in identifying trends, anomalies, and areas for improvement, ensuring that assessments are contextualized and relevant. Ultimately, normative data enhances the interpretation of results and supports effective interventions.

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