Alibabar recently established the Damo Artificial Intelligence Centre $($DAIC$).$ The DAIC is

considering $3$ programs: AI in Logistics $($AIL$)$; AI in Finance $($AIF$)$ and a medical technology venture,

Damo Electronic $($DE$).$ The eventual cost associated with each of these sectors will differ

depending on the developmental climate. Alibabar wishes to identify a program to invest in which

minimizes the development costs. They have estimated the cost of development $($in $million$)$

under various developmental climates for the three industry sectors as follows:

Development Costs

$($$ million$)$

Developmental Climates

CONSERVATIVE MATURE AGGRESSIVE

AI in Logistics $8\mathrm{.}76\mathrm{.}65\mathrm{.}4$

AI in Finance $9\mathrm{.}37\mathrm{.}28\mathrm{.}1$

Damo Electronic $8\mathrm{.}47\mathrm{.}26\mathrm{.}3$

Determine the best sector for investing in using the following decision criteria:

$$ Optimistic decision criteria

$$ Pessimistic decision criteria

$$ Equal likelihood criteria

Alibabar engaged the services of an AI Management Consultancy $($MC$)$ to project the chances of

a Conservative Developmental Climate to be $50\%,$ that of Mature Climate to be $20\%$ and

Aggressive Developmental Climate to be $30\%.$ The AI MC engagement costs Alibabar $$160,000.$

With the AI MC$$s estimates, what is the decision which minimizes the expected regret? Show the

regret table and evaluate the minimum expected regret. Was the investment by Alibabar

worthwhile? Explain your assessment