Expectational Error

The error in terms of what we actually expected to be, and what actually happened.

Example

Take the example of Inflation, $P^{e2025}$ (in the year 2024, what will be the inflation during the next financial year, 2025). Say, we thought that inflation would be $P^e=6\%$. But in reality $P=4\%$ in 2025 (present). The difference is referred to as Expectational Error.

So the expectational error was $2\%$.