ANOTHER OPTIMAL STOPPING PROBLEM,
Abstract
Randolph has discussed the following problem: suppose an experimenter takes observations X1, X2, ... sequentially from a given population. Each observation costs a fixed amount c. After each observation the experimenter can either stop and take as his reward the maximum of the Xi so far observed, or he can take another observation. The problem is to discover what policy will maximize net return (the difference between reward and costs). The purpose of this note is to discuss a problem that leads to an optimal stopping rule which terminates the experiment whether the largest observed X is small or large.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1967
- Accession Number
- AD0658820
Entities
People
- Thomas A. Brown
Organizations
- RAND Corporation