On the One Arm Bandit Problem.
Abstract
The author considers the one arm bandit problem when future losses are discounted by a factor gamma per time period, 0 < gamma < 1. The author adopts a Bayesian approach and formulates the problem as an optimal stopping problem. In the case of a uniform distribution with an unknown range or normal distribution with an unknown mean, it is shown that the boundaries of the continuation region in the parameter space of the conjugate prior family approach limits as gamma nears 1 (after appropriate normalization in the normal case). (Modified author abstract)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 29, 1974
- Accession Number
- AD0783685
Entities
People
- Michael Woodroofe
Organizations
- George Washington University