Note that every forecast is important to determine your payment as until the end of the experiment you do not know what other participant has chosen.
Payments
The payments for each question are determined as follows.
One participant in this room (excluding you) will be picked at random and this participant's decision in block 2 will be retrieved.
If the choice picked by the selected participant is A, the forecast error = (1-your choice)².
If the choice picked by the selected participant is B, the forecast error = (your choice)².
A uniform random number will be drawn form the interval from 0 to 1;
You will receive £5 if the forecast error is below the random number and will not receive any additional payment otherwise;
For example, if
You selected 1%-20%, the selected participant chose A in the corresponding payment structure, and the random number that is generated by computer is 0.5
So your forecast error is (1-your choice)²: (80% to 99%)² = 0.64 to 0.9801, because 0.5 < 0.64. Then you get £0
You selected 41%-60%, the selected participant chose B in the corresponding payment structure, and the random number that is generated by computer is 0.7
So your forecast error is (your choice)²: (41% to 60%)² = 0.1681 to 0.36, because 0.7 > 0.36. Then you get £5.00
One out of 15 forecasts will be chosen at random.
You will only see outcomes in the end of the experiment.
NOTE Since your forecasts are made when you do not know what other participants have chosen. The best thing you can do to gain the highest payment in this block is to simply state what you think.
Read this page carefully, we will test your comprehension in the next page.