This company pays kids to do their math homework | Mohamad Jebara

70,521 views ・ 2018-03-02

TED


Please double-click on the English subtitles below to play the video.

00:13
For as long as I remember, I've loved mathematics.
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Actually, it's not 100 percent true.
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I've loved mathematics for all but a two-week period
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in senior high school.
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(Laughter)
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I was top of my class,
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and we were about to start the Extension Maths course.
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I was really excited about this brand new topic coming up,
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complex numbers.
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I like complex.
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My teacher was priming us for the concepts
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with some questions about square roots.
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Square of nine -- three;
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square of 256 -- sixteen.
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Too easy.
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Then she asked the trick question:
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What about the square root of negative one?
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Of course, we were all over it --
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"Come on, Miss!
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We all know you can't take the square root of a negative."
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"That's true in the real world," she said.
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"But in the complex world,
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the square root of negative one is the imaginary number i."
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(Laughter)
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That day,
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my entire mathematical world came crashing down on me.
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(Laughter)
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"Imaginary numbers?
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Seriously?
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But mathematics is a source of truth,
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please don't go abstract on me.
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I would have studied art
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if I wanted to play with imaginary numbers."
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(Laughter)
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"This is Extension Maths, let's get back with our program!"
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She didn't,
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and over the next couple of weeks,
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I reluctantly performed meaningless calculations,
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(Laughter)
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finding imaginary solutions to quadratic equations.
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(Laughter)
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But then something amazing happened.
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We began finding elegant solutions
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to real-world problems we previously had no answers to,
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starting with the complex world of imaginary numbers.
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So some mathematician 500 years ago
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decides to have some fun and make up these imaginary numbers,
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and because of that we can now derive these amazing identities
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with applications in the real world,
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in fields like electrical engineering.
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Wow!
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I gained a whole new level of appreciation for mathematics.
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And after my brief mistrust,
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I was now in love with the subject more than ever.
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Francis Su, the mathematician, sums it up beautifully when he says,
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"We study mathematics for play, for beauty,
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for truth,
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for justice and for love."
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But if you ask a student today,
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you'll probably hear a different story.
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You might hear "difficult" and "boring."
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And they might be right about difficult.
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But it's certainly not boring.
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In fact, I'd say being difficult to master
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is part of what makes it beautiful.
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Because nothing worth doing is easy.
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So we need students to stick around long enough through the difficult parts
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to appreciate the beauty when it all ties together.
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Much like I did for that brief couple of weeks in high school.
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Unfortunately, our school systems --
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we move students through mathematics in a lockstep process.
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So those who fall a little behind
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find it near impossible to ever catch up and appreciate that beauty.
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But why is this a problem?
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Why should we care?
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Well today, more than ever,
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our world needs every citizen to be skilled in mathematics.
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With the advent of artificial intelligence and automation,
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many of the jobs we see today will either not exist
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or be transformed to require less routine work
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and more analysis and application of expertise.
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But we're not producing the extra mathematics students
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to fill these new roles.
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This graph shows the number of students
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taking Standard Mathematics
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and Advanced Mathematics
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over a period of 20 years in Australia.
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It's clear that while we have demand for mathematics skills rapidly increasing,
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supply is in steady decline.
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To put things in perspective,
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half of the students completing high school today in Australia
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are not prepared to understand any argument
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about rates of change in data.
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In this digital age
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where fake news can influence election results,
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this is very concerning.
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Let me give you a concrete example.
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Let's take a closer look at that graph.
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Can everyone see what I've done there to stress my point?
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If you can't, let me show you now,
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with the vertical axis starting at zero, where it should be.
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There, you see it now, right?
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It's the exact same data
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but I've manipulated the representation to influence you.
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And that's cool, that's my job up here.
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(Laughter)
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But in all seriousness,
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unless we do something
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to drastically improve student engagement with mathematics,
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we'll not only have a huge skills shortage crisis
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but a fickle population,
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easily manipulated by whoever can get the most air time.
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So what's the solution?
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There are a lot of things we have to do.
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We need curriculum reform.
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We need our best and brightest encouraged to become teachers.
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We need to put an end to high-stakes tests
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and instead follow a mastery-based learning approach.
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But all these things take time.
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And I'm impatient.
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See, I've been thinking about this for eight years now.
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Ever since I left my job as a derivative trader
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to build a web application to help students learn mathematics.
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Today, our app is used by schools across the globe.
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And we're seeing big improvements
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for students who use the program regularly.
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But here's the thing --
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we're only seeing it for students who use the program regularly.
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And most of them don't.
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So after years of developing and refining the application,
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our biggest challenge was not so much product related,
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our biggest challenge was motivating students
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to want to work on their gaps in understanding.
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You can imagine in today's attention economy,
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we're competing against Facebook, Snapchat and PlayStation
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to try and get these students' time.
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So we went back to the drawing board
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and started to think about how we could make it worthwhile
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for students to spend some of their "attention budget"
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on their education.
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We tinkered with gamification elements
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like points, badges and avatars,
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and we'd see a temporary spike in engagement
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but things would go back to normal as soon as the novelty wore off.
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Then one day, my cofounder, Alvin,
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came across a study of students in Chicago
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led by the behavioral economist, Steven Levitt,
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where they paid students who improved on their test scores.
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He started telling me about some of the things they tested for
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and the interesting findings they had.
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For instance, they found that incentivizing students for inputs,
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like effort,
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worked a lot better than incentivizing for outputs,
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like test scores.
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They found that for younger students, you could win them over with a trophy
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but for older students,
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you really needed cash.
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(Laughter)
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And the amount of cash mattered -- 10 dollars was good,
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20 dollars -- even better.
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But perhaps most importantly,
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they found that the rewards had to be instant
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rather than promised at a later date.
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They went as far as to give the students 20 dollars and say,
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"Touch it, feel it, smell it --"
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(Sniffing)
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"It's all yours.
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But if you fail, I'm going to take it back."
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And that worked really well.
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I immediately got excited
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about the possibilities of implementing this in our program.
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But once the excitement settled down,
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there were a few concerns that crept in our minds.
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Firstly,
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was this ethical?
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(Laughter)
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Secondly, how would we fund this thing?
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(Laughter)
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And finally,
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would the results be sustained if the students were no longer paid?
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Now, let's look at the ethical part first.
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I'm a bit of a mathematical purist.
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So I'd be one of the first people to say that we should study mathematics
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for the sake of mathematics.
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Remember -- for play, for beauty, for truth, for justice and for love!
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Not for money!
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(Laughter)
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As I struggled with this, I came to see that,
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while it's a way I look at mathematics now,
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it's only because I studied it long enough to appreciate it.
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It's very difficult to tell a student struggling with mathematics today
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to work hard for a payoff in the distant future.
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And it's not so much bribery that's at work here,
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because I could bribe students
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by telling them about my big bonuses in my derivative trading days
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as a reward for doing well at maths.
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But it doesn't pay off for a very long time.
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So it's practically naught.
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Behavioral economists call this hyperbolic discounting.
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And Levitt goes as far as to say
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that all motivating power vanishes
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when rewards are handed out with a delay.
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So, from a purely economic point of view:
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if we don't use immediate incentives,
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we are underinvesting in student outcomes.
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I took heart from that, and came to see that as a society,
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we're actually quite used to financial incentives.
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Whether it be by the government, by employers or at home.
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For instance, many parents would pay their children
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an allowance or pocket money for doing chores in the house.
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So it wasn't really all that controversial.
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As I thought about that,
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it started to answer that second question of how we were going to fund this.
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Naturally, parents are the most invested in their children's education.
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So, let's charge them a weekly subscription fee
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to use our program,
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but --
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if the students complete their weekly maths goal,
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we'll refund the subscription amount directly into the child's bank account.
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We chose three exercises completed
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over a one week period
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for a 10 dollar reward.
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That way we're incentivizing effort rather than performance
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over a short enough period
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and with a substantial enough payout for the students to care.
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Now, I remember when I first told my wife about this new business model.
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If she had any doubt left that I've gone completely mad,
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that pretty much confirmed it for her.
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She said to me, "Mo ...
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you realize that if everybody does their homework, which you want,
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you're not going to make any revenue, which you don't want.
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Great business model."
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(Laughter)
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I say it's more like an antibusiness model,
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it's free if you use it, but you pay if you don't.
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Now, I knew from experience
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that not everybody in the country was going to jump on
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and do their maths homework every week.
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And if they did, sure we'd go bust pretty quickly,
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but hey, we would have solved the country's maths skills crisis.
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(Laughter)
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As a company, we've always run a double bottom line,
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looking to both make a return for investors
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as well as improve student outcomes.
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We know that our path to long-term profitability
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is through improving student outcomes.
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So our dual objectives should never be at odds.
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So we're always looking
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to make our product decisions
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around helping students reach their weekly maths goal,
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effectively ensuring that they get paid
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and not us.
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Now you must be wondering: How is this crazy business model going?
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You'll be glad to know we're still in business.
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We've been testing this now for the last five months
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on just our personal home users in Australia
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before we think about rolling it out to schools.
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And here are the early results.
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The green represents students who are completing their weekly maths goal
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and the red those who aren't.
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You can see a lot more completing their homework than not.
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In fact, as our user base has grown,
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we found the percentage to be pretty steady, at around 75 percent.
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So on average, we receive our weekly subscription fee
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once every four weeks,
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and the other three weeks, we're rewarding the students.
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Now of course we're leaving some money on the table here,
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but guess what?
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It turns out these students
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are 70 percent more engaged than students not on the reward program.
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Check.
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From a business perspective,
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they are less likely to churn
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and more likely to refer friends,
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so we're hoping to trade off a lower revenue per user
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for a bigger and more engaged user base.
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Check and check.
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Now for that final question.
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Would they keep coming back if they were no longer paid?
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Mathematics is so much more than just a subject you study at school.
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It's a human endeavor.
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It's what helps us to understand the world around us.
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And the more you know, the more you want to know.
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So yes, we've triggered initial engagement
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with a financial reward.
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But in the long run,
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the money won't matter anymore.
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Because in the long run,
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the wonder of mathematics will be the incentive
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and understanding it
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will be the reward.
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Thank you.
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(Applause)
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