moodle/lang/en/help/exercise/usemax.html

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<p align="center"><b>Handling of Multiple Submissions</b></p>
<p>This option determines how the exercise should calculate the
final grades of the students. When there are multiple submissions
the teacher can chose between either using the best grade or the
mean grade from each students' set of submissions. This option
can be changed at any time during the exercise. Any change has an
immediate effect in the Grades page (provided, of course, multiple
submissions are present).</p>