ANSWER PART B ONLY

Answer Part B, it is different from the other questions that were asked that looks like this.

(10 points total) Hudson Corporation is considering three options for its data processing operation: Option 1 - continue with its own staff, Option 2 - hiring an outside vendor, and Option 3 - using a combination of its own staff and outside vendor. The cost of the operation depends on future demand. The annual cost of each option (in thousands of dollars) is tabulated in the following payoff table. a. (5 points) If the demand probabilities are 0.2,0.5, and 0.3 respectively, which decision alternative will you recommend and why? b. (5 points) Compute and interpret the value of Expected Value of Perfect Information (EVPI) for managerial decision-making