Question: you select it? Problem 3. Infinite horizon average cost minimization (35 points) Consider the DP problem with discrete state and control spaces S =

you select it? Problem 3. Infinite horizon average cost minimization (35 points)

you select it? Problem 3. Infinite horizon average cost minimization (35 points) Consider the DP problem with discrete state and control spaces S = {-00,....-3,-2,-1,0,1,2,3,....co} and allowable control set independent of the state U = {0,1,2} respectively. Period costs are gk(xk,uk,wk) = 10K+cuk+p max {0,-x-uk+wk}+ h max{0, xk+uWk} for k=0,1,...,N-1, with 1,>o the indicator function that is equal to 1 when u>0, and 0 otherwise. u>0 K a fixed cost incurred whenever the indicator function 1,>0 is equal to one c is the variable cost per unit of uk p is cost per unit of negative xk+1 h is the cost per of positive x+1 Wk is a discrete random variable with probability mas function Prob( w = 0)=0.1, =1)=0.3, Prob(w = 2)=0.5, Prob(w = 3)=0.1. Prob(wk and dynamics are x+1 = xk+uk - Wk 3.1 Write the transition probabilities Prob(xnext=xnow +i|unow = j) for i=0,1,2,3 and j=0,1,2 and Prob(next=Xnow -1|unow = j) for i=0,1,2,3 and j=0,1,2 3.2 Write a linear system that finds the differential cost h(x) and the average cost per period J, for the truncated state space x = {-k,....-3,-2,-1,0,1,2,3,...k} and policy (x)=2 for'x

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