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Intermediate Open Pro

Compute and Interpret UCB1 Scores

Three ad creatives have accumulated the following data after t = 1{,}000 total impressions across all three:

Creative Clicks Impressions
X 40 500
Y 15 100
Z 90 400
  1. Compute the empirical click-through rate and the UCB1 score for each creative.
  2. Which creative does UCB1 select next, and is this the creative with the highest empirical CTR? Explain why or why not.
  3. Suppose Y's impression count triples to 300 with the same 15% empirical CTR (45 clicks). Recompute Y's UCB1 score and explain qualitatively what changed and why.

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