The Bandit simulation implemented the multi-armed or N-armed bandit problem. Imagine you have 10 slot machines in front of you. Each of the machines has a certain probability of paying out. What strategy do you use in terms of exploration versus exploitation? Exploration allows you to get more information and discover machines with higher payout rates. Exploitation takes an immediate reward from the machine with the highest expected payoff.
This problem has been examined extensively in statistics, economics, and management literature. Using the Forio online simulation engine, this problem is modeled and presented for students to learn about the problem.