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Multi-Armed Bandit

A multi-armed bandit is a sequential decision problem: choose among actions (“arms”) with unknown reward distributions to maximise cumulative reward, balancing exploration and exploitation.

It is the simplest reinforcement setting and a production staple for online optimisation.
Why It Matters in AI
A/B tests are batchy; bandits adapt allocation toward better arms sooner. Used in ranking, ads, recommendations, and adaptive experiment design — core decision-making under uncertainty.
Key Points
Aspect Description
Use Online UI optimisation, ad creative selection
Metric Regret vs always picking the best arm
Problem Unknown reward means; pull arms over time
Related Contextual bandits, exploration-exploitation
Algorithms ε-greedy, UCB, Thompson sampling
Vs full RL No long state horizon; usually stateless
Simple Analogy
A row of casino slot machines: try unfamiliar levers enough to learn, but spend more time on the ones that pay.
Common Usage Examples
  • Thompson sampling for button colours
  • UCB news article recommendation
  • Adaptive clinical dose-finding analogies
  • Simulate regret curves
Summary
In short: Multi-armed bandits sequentially choose actions to maximise reward under uncertainty — the workhorse of adaptive online experiments.