When to Run Bandit Tests Instead of A/B/n Tests

When should you use bandit tests, and when is A/B/n testing best? Though there are some strong proponents (and opponents) of bandit testing, there are certain use cases where bandit testing may be optimal. First, let's dive into bandit testing and talk a bit about the history of the N-Armed Bandit Problem. The multi-armed bandit problem is a classic thought experiment. There are many different slot machines (known as'one-armed bandits', as they're known for robbing you), each with a lever (and arm, if you will). You think that some slot machines payout more frequently than others do, so you'd like to maximize this.