Question: Jack has a car dealership and is looking for a way to maximize his profits. Every week, Jack orders a stock of cars, at the

Jack has a car dealership and is looking for a way to maximize his profits. Every week, Jack orders a stock of cars, at the cost of d dollars per car. These cars get delivered instantly. The new cars get added to his inventory. Then during the week, he sells some random number of cars, k, at a price of c each. Jack also incurs a cost u for every unsold car that he has to keep in inventory. Formulate this problem as a Markov decision process. What are the states and actions? What are the rewards? What are the transition probabilities? Describe the long-term return.

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The problem can be formulated as a Markov Decision Process MDP as follows States S The state of the system at any time step is given by the number of ... View full answer

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