Template-Type: ReDIF-Paper 1.0
Title: Optimal Choice From Known Rewards With Uncertain Response
Author-Name: Z. Govindarajulu
Author-Name: Klaus J. Utikal
Abstract: Consider a random permutation of a finite number $n$ of known
  	elements representing rewards. These rewards will be made or not
  	made with certain known probabilities. At any stage a reward made
  	can be accepted or rejected, there is no recall and only one reward
  	can be accepted. The problem is to maximize the expected reward
  	accepted. We propose a computationally feasible approximation to the
  	solution of the dynamic programming equation of the problem.
  	Estimates of the error of the approximation are given recursively as
  	well as in explicit form. Recursively the error of the approximation
  	at any stage of the game is obtained in terms of the approximation
  	and its error estimate at the following stage. In numerical examples
  	the goodness of the approximation and its error estimates are found
  	by comparison with the optimal solution.
Keywords: optimal stopping, optimal policy approximations, dynamic
  	programming, uncertainty of selection.
Creation-Date: 1994-11
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonsfa/bonsfa459.ps
File-Format: Application/PostScript
File-Size: 13 pages
Handle: RePEc:bon:bonsfa:459