Why might Rational Expectations forecasts be preferred to Adaptive Expectations forecasts? Rational Expectations forecasts more accurately reflect what is likely to happen because they incorporate all currently available information. Using weighted averages of data from previous periods guarantees that Rational Expectations forecasts are superior because they are based on actual data rather than nebulous information. Adaptive and Rational Expectations forecasts are equally likely to yield accurate forecasts. Adaptive Expectations forecasts incorporate all relevant, publicly available information and are thus more likely to yield poorer forecasts of future activity