Demonstrating the Gambler's Fallacy in an Introductory Statistics Class

In this article, we describe a classroom demonstration that uses the Gambler's Fallacy to illustrate misconceptions about random processes and how they affect statistical interpretation. The demonstration used a database collected from simulated gambling by students picking professional football games with the point spread (i.e., a real-life random process). The results of student picks illustrated that random processes are not self-correcting and reinforced the relation between sample size and variability. Formal and informal feedback from students indicated that the demonstration was well received and recommended for future classes.

Demonstrating the Gambler's Fallacy in an Introductory Statistics Class Journal Articles