I'm a little stuck on how to rank slot machines in the below problem? 1.) You are presented with 100 slot machines 2.)Each one has a different utilitiy cost U for each pull 3.)Each machine has a Beta distribution Bi with parameters a and b and a scaling factor s that determines payoffs 4.)When using the slot machine, a player pays U utility, and then receives a payoff that equals a draw from Bi multiplied by S.
Does anyone know how they would rank these machines? I have an idea to calculate the mode of each machine, but that doesn't really take into account the utility cost of each pull and the scaling factor.
Last Edit: May 4, 2018 19:08:48 GMT by jadeknight: Add Attachments