Predicting future outcomes is fundamental for adaptive behaviour. If we can predict the outcome of our actions we can choose the best course of action, if we can’t then then the outcome will be a surprise that we’ll use to learn for the future. Reward predictions for example are crucial for learning since they can be compared to actual outcomes to determine if an outcome was better or worse than expected. Even though reward expectation signals are observed in many areas of the brain how they are computed remains unknown. The main reason for lack of progress is the absence of a clear understanding of where expectation is generated, and which circuits are involved in its computation. Consequently, we are missing the prerequisite knowledge for determining where reward expectation arises, how it is computed, and how expectations are learnt. The aim of this work is to determine where expectations (predictions) are formed in the brain and determine what types of predictions are being stored. Knowing how the brain learns to make predictions is critical as these are processes that are disrupted in many psychiatric diseases such as depression and schizophrenia.