Can LLMs Model Incorrect Student Reasoning? A Case Study on Distractor Generation

Modeling student misconceptions in a realistic manner is critical for AI in education. In this work, we examine how large language models (LLMs) reason about misconceptions when generating distractor answers for multiple-choice questions (MCQs), a task that requires producing answers that are incorrect, yet plausible. We introduce a taxonomy over reasoning strategies for distractor generation that is grounded in learning-science literature and empirical observation, which we apply to LLM-generated reasoning traces across math and science MCQs. On the math dataset, we find that models follow a misconception-based process with potentially high diagnostic value: they recover the correct solution, articulate student errors, simulate them, and select plausible candidates. On the science dataset, on the other hand, they tend to follow a less robust approach based on semantic similarity to the correct answer. We find the most frequent failure modes to be that the model is unable to generate a correct solution or that it discards plausible distractor candidates when performing selection. Providing the correct solution in the prompt yields a relative improvement of 6.4% in alignment with human-authored distractors, highlighting the critical role of anchoring distractor generation to the correct solution. Together, our findings offer an interpretable view of how LLMs model incorrect student reasoning.