Question: 1 . Multi - Arm Bandit Problem ( 5 Marks ) : Imagine an innovative digital advertising agency, AdMasters Inc., that specializes in maximizing click

1 .

Multi

-

Arm Bandit Problem

(5

Marks

)

: Imagine an innovative digital advertising agency, AdMasters Inc., that specializes in maximizing click

-

through rates

(

CTR

)

for their clients' advertisements. One of their clients has identified four key tunable elements in their ads: Age, City, Gender, and Mobile Operating System

(

) .

These elements significantly influence user engagement and conversion rates. The client is keen to optimize their CTR while minimizing resource expenditure.

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