Share
Explore BrainMass

Adaptive expectations

Suppose you flipped an honest coin 10 times and heads came up 8 times. You are about to toss the coin another 10 times. Using adaptive expectations, how many heads do you expect? Based on rational expectations, how many heads do you expect?

Solution Preview

Adaptive expectations means that people form their expectations about what will happen in the future based on what has ...

Solution Summary

Adaptive expectations are demonstrated.

$2.19