Development of practical skills in probability: A teaching innovation project to make applied economics more fun with games of chance

Abstract

Probability theory is the cornerstone of mathematical statistics and econometrics, serving as the core of modern economic theory. The students studying “Chance and Probability” are first-year college students who have just entered university. This course is essential for two majors, Applied Statistics and Applied Data Science, offered by the Faculty of Statistics at the Complutense University of Madrid, serving as a fundamental foundation for data analysis. Students find many concepts in this course abstract and struggle to understand their importance, resulting in low motivation for learning. Therefore, it is necessary to innovate teaching materials and methods, integrating them with case analysis. With this innovation, we propose to combine probability theory with practical cases, encouraging students to apply probability concepts to solve problems across various scenarios. To this end, we simulate random experiments by tossing balls or coins using the Galton Board, and playing variations of the South Korean series “Squid Game”. The analysis of various cases demonstrates to students the real-life applications of probability theory. These innovative teaching measures implemented in the “Chance and Probability” course can effectively engage students, ignite their enthusiasm for learning, enhance their problem-solving skills, and fortify their understanding and grasp of probability concepts.