Final answer:
Value iteration is an algorithm used to solve Markov Decision Processes (MDPs) by iteratively calculating the value function.
Step-by-step explanation:
Value iteration is an algorithm used to solve Markov Decision Processes (MDPs) by iteratively calculating the value function. In this case, the MDP has states S={0,1,2,3} and actions A={b,c}. The reward and transition functions are not given in the question, so I cannot provide the specific values. However, I can explain how value iteration works.
Value iteration starts by initializing the value function V(s) for each state s to 0. Then, it iteratively updates the values based on the Bellman equation: V(s) = maxa∈A {R(s,a) + γΣs' T(s,a,s')V(s')}.
Using this equation, you can compute the value function for the first three iterations, where each iteration involves updating the values for all states based on the previous iteration's values.