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According to the definition of a fully observable environment in Russell & Norvig, AIMA (2nd ed), pages 41-44, an environment is only fully observable if it requires zero memory for an agent to perform optimally, that is, all relevant information is immediately available from sensing the environment.

From this definition and from the definition of an "episodic" environment in the same book, it is implied that all fully observable environments are, in fact, episodic or can be treated as episodic, which doesn't seem intuitive, but logically follows from the definitions. Also, no stochastic environment can be fully observable, even if the entire state space at a given point in time can be observed because rational action may depend on the previous observation that must be remembered.

Am I wrong?

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