Question: advertisement decision is k = 2 . Past data indicates that that the transition probabilities for each decision is given below: Moreover, the annual profit
advertisement decision is k Past data indicates that that the transition probabilities for each decision is given below:
Moreover, the annual profit matrix if decision k is taken when the state is i is estimated as
The marketing manager wants to find the optimal policy in order to maximize the average profit per year.
a points What is the average profit per year if the manager chooses not to advertise at all in any state.
b points Determine the primal linear programming formulation in order to find the optimal policy do not solve it
c points Perform only iteration of the policy improvement algorithm assuming that the initial policy is not to advertise at all in any state.
d points Write down a linear programming formulation primal or dual if the objective is to maximize the expected total discounted profit where the annual discount factor is alpha do not solve it
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