I have read the description of NTP peers and I'm quoting one below....

Peer - An NTP peer is a member of a group of NTP servers that are
tightly coupled. In a group of two peers, at any given time, the most
accurate peer is acting as a server and the other peers are acting as
clients. The result is that peer groups will have closely synchronized
times without requiring a single server to be specified.

My question is how does NTP calculate which peer is more accurate?

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