Scoring Rules and Decision Analysis Education

Experiential learning is perhaps the most effective way to teach. One example is the scoring procedure used for exams in some decision analysis programs. Under this grading scheme, students take a multiple‐choice exam, but rather than simply marking which answer they think is correct, they must assign a probability to each possible answer. The exam is then scored with a special scoring rule, under which students' best strategy is to avoid guessing and instead assign their true beliefs. Such a scoring function is known as a strictly proper scoring rule. In this paper, we discuss several different scoring rules and demonstrate how their use in testing situations provides insights for both students and instructors.