Reference no: EM133123822

You and one of your classmates of FIN207 are selected to play a game. In this game, both players would write down a number between 0 and 10 simultaneously. If the sum of the two numbers is 10, each of you can get the same amount of dollars as the number each of you wrote. Otherwise, both of you get nothing. Answer the following questions with game theory knowledge.

A) Do we have any pure strategy Nash equilibrium in this game?

B) Which number would you choose and why you choose that number?

C) "In stock markets, the investors are in a zero-sum game." Is this statement true or false?

D) "In the area of machine learning, reinforcement learning is one base paradigm. It aims to find the action which leads to the maximum reward or drive to the optimal outcome." According to this statement, can we interpret the problem of reinforcement learning directly as a game theory problem of finding the Nash equilibria?