If additional information is not used when forming an optimal forecast because it is not available at that time,then expectations are
A)obviously formed irrationally.
B)still considered to be formed rationally.
C)formed adaptively.
D)formed equivalently.

Question

Quizplus · Accepted Answer

When forming an optimal forecast, if additional information is not available at that time, expectations are still considered to be formed rationally because they are based on the best available information at that time. While the use of additional information may improve the accuracy of the forecast, its absence does not necessarily mean that the expectation was formed irrationally or adaptively.

If Additional Information Is Not Used When Forming an Optimal