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4. (20 points) Kate loves to knit flowers and sell them at the farmer's market. 2 . Each week she must decide how many flowers

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4. (20 points) Kate loves to knit flowers and sell them at the farmer's market. 2 . Each week she must decide how many flowers to make. A knitted flower can be sold for $12.50. . She prefers not to store more than 8 flowers at her home at any point in time. . Each week there is 10% chance one customer wants to buy a flower, a 25% chance she sees a demand of 2 flowers, a 35% chance she sees a demand of 3 flowers, a 10% chance she sees a demand of 4 flowers, and a 20% chance no customers are interested in buying her flowers. . She never sees a demand of more than 4 flowers in any given work. If she has no flowers when a customer comes, the customer leaves without buying flowers. . On those works that she chooses to make flowers, she must pay a total fixed cost of $15 for renting the space to make the flowers. In addition, it costs her $8 to make one flower. . Flowers not sold at the end of the day can be donated to charity for $3 tax credit. . Formulate this problem as a Markov decision process, in which the objective is to maxi- mize the total expected income over the next 3 weeks (assume there are only 3 works left before the farmer's market closes for the winter). Clearly indicate the 5 basic components of this MDP. . Update: Both of the following interpretations are acceptable: (a) Flowers not sold at the end of the three weeks can be donated to charity for $3 tax credit. (b) Flowers not sold at the end of every week can be donated to charity for $3 tax credit

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