Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing $($referred to as outsourcing$),$ or using a combination of its own staff and an outside vendor. The cost of the operation depends on future demand. The annual cost of each option $($in thousands of dollars$)$ depends on demand as follows:

Demand

Staffing Options High Medium Low

Own staff $600550350$

Outside vendor $900650450$

Combination $700600400$

If the demand probabilities are $0\mathrm{.}4,0\mathrm{.}25,$ and $0\mathrm{.}35,$ which decision alternative will minimize the expected cost of the data processing operation?