Expectations Formation

Expectations Formation refers to the process by which individuals or organizations develop forecasts about future events or outcomes based on available information, past experiences, and perceived probabilities. This mental framework influences decision-making and behavior, as people adjust their actions based on what they anticipate will happen next. Essentially, it's how our beliefs about the future are shaped, guiding our choices and reactions in various situations. Clear expectations help in planning and reducing uncertainty, while inaccurate expectations can lead to surprises or mistakes.