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It compares people of the same age or age category and assumes that IQ is normally distributed, that the average (mean) is 100 and that the standard deviation is something like 15 (IQ tests sometimes differ in their standard deviations).
The average IQ across all Americans is a score of 100, With 91 to 109 considered average or normal. 110 to 119 is considered to be Superior Intelligence and 120 to 129 is considered Very Superior Intelligence..