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Consider the two-armed bandit problem of Example 4.24. Bruce Barnes pro- posed the following strategy, which is a variation on the play-the-best-machine strategy.
The machine with the greatest probability of winning is played un- less the following two conditions hold: (a) the difference in the probabilities for winning is less than .08, and (b) the ratio of the number of times played on the more often played machine to the number of times played on the less often played machine is greater than 1.4. If the above two conditions hold, then the machine with the smaller probability of winning is played.
Write a program to simulate strategy. Have your program choose the initial payoff probabilities at random from the unit interval [0, 1], make 20 plays, and keep track of the number of wins. Repeat this experiment 1000 times and obtain the average number of wins per 20 plays.
Implement a second strategy-for example, play-the-best-machine or one of your own choice, and see how this second strategy compares with Bruce's on average wins.
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