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Here is an excel file that contains part of the responses from a class questionnaire. Using this data, select all correct options below. Read the
Here is an excel file that contains part of the responses from a class questionnaire. Using this data, select all correct options below.
Read the question carefully. Write the value of X that makes you indifferent between both options. In other words how much you should be offered in one year (value of X) so it will be as valuable to you as $100 now. | Read the question carefully. Write the value of X that makes you indifferent between both options. In other words how much you should be offered in 10 years (value of X) so it will be as valuable to you as $100 now. | Implied annual discount rate for 1-year question | Implied annual discount rate for 10-year question | Present bias, parameter (lower means more preset bias, = 1 means no difference between future and present) |
103 | 130 | 3% | 3% | 0.95 |
103 | 134.4 | 3% | 3% | 0.94 |
110 | 120 | 10% | 2% | 0.90 |
108 | 216 | 8% | 8% | 0.86 |
110 | 200 | 10% | 7% | 0.85 |
110 | 250 | 10% | 10% | 0.83 |
110 | 260 | 10% | 10% | 0.83 |
110 | 260 | 10% | 10% | 0.83 |
110 | 260 | 10% | 10% | 0.83 |
110 | 260 | 10% | 10% | 0.83 |
103 | 1146 | 3% | 28% | 0.74 |
120 | 600 | 20% | 20% | 0.70 |
115 | 1000 | 15% | 26% | 0.68 |
137 | 259 | 37% | 10% | 0.68 |
120 | 1000 | 20% | 26% | 0.66 |
120 | 1000 | 20% | 26% | 0.66 |
120 | 1200 | 20% | 28% | 0.65 |
150 | 270 | 50% | 10% | 0.62 |
135 | 1000 | 35% | 26% | 0.59 |
170 | 600 | 70% | 20% | 0.51 |
160 | 1000 | 60% | 26% | 0.51 |
200 | 1000 | 100% | 26% | 0.42 |
200 | 1000 | 100% | 26% | 0.42 |
200 | 2000 | 100% | 35% | 0.39 |
200 | 10000 | 100% | 58% | 0.32 |
250 | 2499 | 150% | 38% | 0.31 |
300 | 1000 | 200% | 26% | 0.29 |
400 | 20000 | 300% | 70% | 0.16 |
500 | 5000 | 400% | 48% | 0.15 |
1200 | 15000 | 1100% | 65% | 0.06 |
1400 | 14000 | 1300% | 64% | 0.06 |
2500 | 250000 | 2400% | 119% | 0.02 |
10000 | 100000 | 9900% | 100% | 0.01 |
a. the average implied annual discount rate for the 1-year question is about 500%
b. the average implied annual discount rate for the 10-year question is about 30%
c. the average coefficient is about 0.55
d. the data indicate that students in this sample on average do not show signs of being affected by present-bias
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