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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).
On the majority of modern IQ tests, the average IQ Score is set at 100 with a standard deviation of 15 so that IQ scores follow a normal distribution of statistical data. This means that approximately 95% of the worldâs population have scores within two standard deviations (SD) of the mean (average IQ score). If one SD is 15 points, as is common in almost all modern tests, then 95% of the population are within a range of 70 to 130, and 98% are below 131.