Question 1 20 Points A company can use advertisement through one of the two media: radio or news. The weekly costs of advertisement in the two media are estimated at $400 and $350, respectively. The company can classify its sales volume during each week as either Fair, or Good. A summary of the transition probabilities associated with each advertising medium follows. Radio News F 0.6 0.4 F 0.5 0.5 G 0.3 0.7 G 0.4 0.6 And the corresponding weekly returns in (thousands of dollars) are Radio Newspaper F 400 750 F 600 875 G 600 1000 G 500 950 find the optimal advertisement policy over the next 3 weeks. Use the editor to format your answer Question 2 20 Points From #1, Exhaustive enumeration: Write all the stationary policies, and give the transition matrix and cost matrix for each policy and solve for E, v, T. Label your policies properly. Use the editor to format your answer Question 3 20 Points From #1, For the infinite planning horizon, use the policy iteration method (without discounting) to find the optimal policy. Use the editor to format your answer Question 4 20 Points From #1 For the infinite planning horizon, use the policy iteration method (with discounting of a = 0.7) to find the optimal policy. Use the editor to format your answer
