Finding the best advertisement banner using bandits
In this section, let's see how to find the best advertisement banner using bandits. Suppose we are running a website and we have five different banners for a single advertisement on our website, and say we want to figure out which advertisement banner is most liked by the users.
We can frame this problem as a MAB problem. The five advertisement banners represent the five arms of the bandit, and we assign +1 reward if the user clicks the advertisement and 0 reward if the user does not click the advertisement. So, to find out which advertisement banner is most clicked by the users, that is, which advertisement banner can give us the maximum reward, we can use various exploration strategies. In this section, let's just use an epsilon-greedy method to find the best advertisement banner.
First, let's import the necessary libraries:
import pandas as pd
import numpy as np
import matplotlib.pyplot as plt
import...