Question

Any time 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 10 years where Joe lives, Joe’s expectations are
almost always perfectly accurate. Are Joe’s expectations rational? Why or why not?

Answer 1

No, Joe's expectations are not rational because though his past expectations were almost always accurate but he does not uses information about snowing when he expects commuting time,using information will improve his expectations and make them more accurate.

According to rational theory a person's expectations should be based on the information And past experiences, expectations which are formed like this are called optimal expectations.

And here Joe is not using his past experiences in a usefull manner to improve his expectations so his expectations are not rational.

Hope this helps!