Row

Column A

Column B

Front-end

Delay

Discount Rate Interval if Subject Switches

Mid-point

Months

(t)

Prize

(M; 000’)

Months

(t)

Prize

(M; 000’)

1-1

4

6000

8

7000

Yes

0 < r ≤ 0.0393

0.0197

1-2

4

6000

8

8000

Yes

0.0393 < r ≤ 0.0746

0.0569

1-3

4

6000

8

9000

Yes

0.0746 < r ≤ 0.1067

0.0907

1-4

4

6000

8

10,000

Yes

0.1067 < r ≤ 0.1362

0.1215

1-5

4

5000

8

10,000

Yes

0.1362 < r ≤ 0.1892

0.1627

1-6

4

4000

8

10,000

Yes

0.1892 < r ≤ 0.2574

0.2233

1-7

4

3000

8

10,000

Yes

0.2574 < r ≤ 0.3512

0.3043

1-8

4

2000

8

10,000

Yes

0.3512 < r ≤ 0.4953

0.4233