Question: 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

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.
Demand
Staffing options
High
Medium
Low
Own staff
650
650
600
Outside vendor
900
600
300
Combination
800
650
500

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