Lever A has paid on seven pulls. Lever B has paid on four pulls. A greedy rule compares the two average payouts. Give the gap between the estimates, B minus A, to three decimal places.
Worked solution
Lever A has estimate and lever B has estimate . The gap is which rounds to 0.179. The greedy rule picks B, because 0.75 is larger. Four pulls is thin evidence, so a rule that explores would still pull A sometimes. The gap is a difference of estimates, not a difference of true payout rates.