packages = ["numpy"]

🎰 Multi-Armed Bandit

The Exploration-Exploitation Dilemma

💡 What is the Multi-Armed Bandit Problem?

Imagine you're in a casino with multiple slot machines (one-armed bandits), each with different unknown payout probabilities. You have a limited budget. How do you maximize your total reward?

The Core Challenge: Balance between exploring new machines to find better options and exploiting the best machine you've found so far.

📊 Learning Slides

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🎯 Key Takeaways

1. Exploration-Exploitation Tradeoff

The fundamental challenge in RL: gathering information vs. using it optimally

2. Simple Strategies Work

ε-greedy is easy to implement and often performs well in practice

3. UCB is Principled

Uses uncertainty estimates to guide exploration with theoretical guarantees

4. Thompson Sampling is Elegant

Bayesian approach with no tunable parameters - exploration emerges naturally from uncertainty

5. Foundation for RL

These concepts extend to full MDPs with state transitions and temporal credit assignment