In contemporary wireless systems, simple ARQ is used above the physical layer in order to provide reliable data communication. As a result, there is a tradeoff between the physical layer transmitted rate and the probability of packet error/ARQ retransmissions. This tradeoff is non-trivial when the transmitter does not have knowledge of the instantaneous channel (e.g., high velocity mobiles in cellular systems). We determine the optimum transmitted rate for such systems, and characterize the dependence of the optimum on the average SNR and the time/frequency selectivity of the channel