Implement value iteration for the gamblers problem

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Reference no: EM131843711

Problem

1. Why does the optimal policy for the gambler's problem have such a curious form? In particular, for capital of 50 it bets it all on one flip, but for capital of 51 it does not. Why is this a good policy?

2. Implement value iteration for the gambler's problem and solve it for p = .25 and p = .55. In programming, you may find it convenient to introduce two dummy states corresponding to termination with capital of 0 and 100 dollars, giving them values of 0 and 1 respectively. Show your results graphically. Are your results stable as θ → 0.

Reference no: EM131843711

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