Does this mean its more beneficial to go to a bad school, get R1 then ace the exams?
Not in my opinion haha- while you're scenario is set for a good score, it's much easier said than done.
A "bad" school would be more of a struggle. Think teacher's who may have trouble themselves answering past Q3 in the workbook trouble.. It'll be harder to get to the stage of "acing the exams", as you won't really have many places to go to consolidate misunderstandings/get help with harder questions.
But sure, if getting the SAC prize is what you're after, then it'll imo be easier going to a weaker school.
Contrarily going to a strong school may not guarantee you the rank 1, but you'll be in the chance of a higher rank that still scales to full moderated SAC marks because of how beast the students there are. This also means if you snag a great ranking, you could bomb the exam and still get a decent SAC mark after scaling. In a lower school, you're sacs will scale right down if you and your classmates all underperform.
Of course the term "bad" school is very loosely defined..
Either way you only have to look at the statistics- a strong school has many more people who get the top scores, and that's for a reason.
Edit: ninja'd
