Question

On rainy days, Jennifer's commute time to work averages 45 minutes. Before leaving, Jennifer hears on the radio that a street on her route is closed due to high water. She plans to add an additional 15 minutes to her commute because of the detour. This decision represents
a. irrational expectations. She should just call in sick and not get out in the bad weather.
b. rational expectations. She is changing her expectations to reflect new information.
c. adaptive expectations. She is adapting her plan to what she heard.
d. irrational expectations. Everyone knows that radio news is unreliable.

Answer 1

Answer:

b.

Explanation:

Based on the information provided regarding this situation it seems that Jennifer's decision represents rational expectations, since she is changing her expectations to reflect new information. This is the case because she was expecting her commute time to be 45 min. but adjusted this expectation when she heard that her route was closed and she knew that she would have to take a detour which would add roughly another 15 min. to her commute.

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