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When the authors first purchased a puppet, Lupe told himself we must be gringos-not Americans, since the Mexicans are also Americans -but men from the north, with well-lined wallets. ” With the third purchase we became collectors, and after the fourth very rich gringos, eccentric enough to be driving around in a small European car. I t was only when Lupe discovered his mistake that we all became friends, and then over Coca Colas (now almost the national beverage), he divulged the address of his uncle Manuel, artist and manufacturer, and the father of a modest family of fourteen.

The use of an electronic computer, which has made it possible to take lo00 samples of the demand over a period of 200 weeks, shows that policy P3 is actually preferable. a A close study of the tables would enable us to eliminate certain trunsito~yphenomena, which we did not wish to discuss here. CHAPTER 2 HOW SHOULD INVESTMENTS BE DlSTRlBUT€D? ( A Combinatorial Problem of Allocation. l W’ine is not, it is true, the popular drink of the Mexicans who prefer pulque, made from the fermented sap of a species of aloe, or a very strong and aromatic drink called tequila, which is produced from another species of this plant.

As N increases, the difference P,(N) - P,(N) approaches zero, as we would readily discover if our calculations were pursued over a greater period than 20 weeks. 6 6 T h e method to be used will be found in Howard and in Kaufmann and Cruon (see the Bibliography for Chapter 2). This small increase of profit will enable him, for example, to take his family for lunch to the floating garden of Xochimilco, a pleasant reward for a more scientific management. MARKOV CHAIN-PROBLEM OF SEQUENTIAL DECISIONS 45 Thus, by associating the theory of Markov decision chains with dynamic programming (it should be observed that in passing from the management for one week to that for two weeks, then for three weeks, and so on, we have strictly applied Bellman's principle of optimality, as defined in Chapter 2), it is possible to treat numerous problems of management with random influences and discover the optimal policy or policies.

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