Summary: ISyE 6664 Exam # 2
Please be neat and show all your work so that I can give you partial credit.
1. (30) Suppose that, in a communicating MDP, we have a stationary policy d
for which gd
(s) = K for all s in an irreducible class C. Provide an algorithm
to construct a policy
for which g
(s) = K for all s S.
2. (40) Each quarter the marketing manager of a retail store divides customers
into two classes based on their purchase behavior in the previous quarter. De-
note the classes as L for low and H for high. The manager wishes to determine