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27 August, 00:05

Anytime it is snowing when Joe Commuter gets up in the morning, he misjudges how long it will take him to drive to work. When it is not snowing, his expectations of the driving time are perfectly accurate. Considering that it snows only once every ten years where Joe lives, Joe's expectations are almost always perfectly accurate." Are Joe's expectations rational? Why or why not?

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  1. 27 August, 00:14
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    Joe's expectation are irrational as there is a scope of improvement in his expectation.

    Explanation:

    The expectation of Joe is not rational. Our expectation about something does not always remain the same. Improvement can be there.

    Joe's expectation could still be improved by accounting for snowfall in his forecasts. Rational expectation means making a perfect guess about something going to happen in the future but in Joe's case, it not necessary that he will make a perfect guess about the driving time so his expectation is not rational.
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