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To what end? Not cheating on the weekly assignments is surely more beneficial to learning than cheating on them is, but I don’t see how removing the assignments altogether would help students learn.
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If you nail the one exam, you get an A+. If you fail it, you get an F. In between, you get what your score says you get.
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I understand the proposed grading system but not the reason for selecting that particular system.
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It's a crude blade to avoid the issues of AI pollution of weekly submissions, of which few teachers have much confidence that the submission itself was actually written by the student - who's assumed to be learning something.

The OP was about students dumbing down their own work to avoid AI detectors ratting them out. That seems like a big loss.

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And what would the goal of that be? I thought the goal of education was... education. The grading is not goal in itself. Will this really motivate kids to do better?
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It's to prove that a student is actually educated and has a firm grasp of the course material. If one gets an A every week on AI-assisted submissions, can one make such a claim? And can a teacher make the claim that they've achieved any actual education of the student?

A grade, on a single proctored test, is a crude metric, but at least it would be a brutally fair one.

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