there is "Grading Methods" setting on Moodle's "Adding/Updating a Hot Potatoes Quiz" page. It has the following values: Highest grade, Average grade, First attempt, Last attempt. Are we talking about that?
If so, I wonder if you have seen the HotPot help file for "Grading Methods" . It explains "Grading Method" used by HotPot activities. It is phrased in plain English - I think
However, I have a feeling you are talking about something else. I see those values are used in Moodle's "Adding/Updating a SCORm/AICC" page. In which case, I would think you are more likely to get the information you seek over on the forum for the Moodle's SCORM module
all the best
Gordon