Hudson Corporation is considering three options for managing its data processing operation: continue with its own staff, outsource to an outside vendor, or use 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.

High demand Med. demand Low demand

Own staff $650650600$

Outsource $900600300$

Combination $800650500$

Assume that the demand probabilities are $0\mathrm{.}3,0\mathrm{.}5,$ and $0\mathrm{.}2($High$,$ Med., Low$).$

a$)$ Which alternative will minimize the expected cost of the data processing operation?

b$)$ If Hudson decides to use the minimax regret strategy, what would be the expected cost?