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n - of Marcus Hutter

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<strong>Marcus</strong> <strong>Hutter</strong> - 14 - Loss Bounds for UniExample ApplicationA dealer has two dice, one with 2 white and 4 black faces, the o2 black faces. He chooses a die according to some deterministicwe bet s=$3 on white or black and receive r =$5 for every corrIf we know µ, i.e. the die the dealer chooses, we should predictsides and win money. Expected Pr<strong>of</strong>it (= –Loss): P nΛµ /n = 1 3If we don’t know µ we can use Solomon<strong>of</strong>f prediction scheme Λ ξthe same pr<strong>of</strong>it:P nΛξ /P nΛµ , = 1 − O(n −1/2 )Bound on Winning TimeEstimate <strong>of</strong> the number <strong>of</strong> rounds before reaching the winning zP nΛξ >0 if L Λ ξn 330 ln 2·K(µ) + O(1)Λ ξ is asymptotically optimal with rapid convergence.

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