Adaptive expectations
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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?
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Solution Summary
Adaptive expectations are demonstrated. How many heads are expected for adaptive expectations are determined.
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Adaptive expectations means that people form their expectations about what will happen in the future based on what has ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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