Question: please solve quickly my deadline in 30 mins (40 points) A company that produces passenger cars reviews the annual sales and classifies it in one
(40 points) A company that produces passenger cars reviews the annual sales and classifies it in one of 2 states: 0 (unsuccessful, sales are low) and 1 (successful, sales are high). The marketing manager then decides on whether or not to advertise this car to further promote the sales. The "no advertisement" decision is label as k =1 and the "advertisement decision is k = 2. Past data indicates that that the transition probabilities for each decision is given below: Py(1) = C:6 0:4), P,(2) = [0:2 0:3] 4, 0.8 Moreover, the annual "profit" matrix if decision k is taken when the state is i is estimated as Cik 1-6 -31 = [38 30 25 The marketing manager wants to find the optimal policy in order to maximize the average profit per year. a) (10 points) What is the average profit per year if the manager chooses not to advertise at all in any state. b) (10 points) Determine the primal linear programming formulation in order to find the optimal policy (do not solve it), c) (15 points) Perform only 1 iteration of the policy improvement algorithm assuming that the initial policy is not to advertise at all in any state
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