| Article ID: | iaor2001338 |
| Country: | United States |
| Volume: | 14 |
| Issue: | 2 |
| Start Page Number: | 151 |
| End Page Number: | 160 |
| Publication Date: | Jan 2000 |
| Journal: | Probability in the Engineering and Informational Sciences |
| Authors: | Sakaguchi M., Hamada T |
| Keywords: | programming: dynamic, computers |
We study an example or R. Bellman's gold-mining problem related to a programming job on the computer. The problem is formulated by dynamic programming and the optimal strategy is explicitly derived. The Bayesian version when the parameter involved is unknown is also solved by the same method. It is shown that the optimal strategy in each of two versions has the ‘no-island’ (or, in other words, ‘control-limit’) property.