An action-value function, or Q-function, estimates the cumulative reward for taking an action in a state and then following a policy. In financial planning, Q(W,t,a) assigns value to an asset allocation a at wealth W and time t, extending the state-only value V(W,t). section 6.2.2 section 6.2.2
Q-learning initializes Q, moves forward through episodes, and updates the selected state-action estimate using the reward, learning rate α, discount rate γ, and the maximum estimated Q at the next state. The next-state maximum is itself an iterative estimate. section 6.2.2 section 6.2.2




