Hudson Corporation is considering three options for managing its data warehouse: continuing with its own staff, hiring an outside vendor to do the managing, 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 $750750700$

Outside vendor $1,000700400$

Combination $900750600$

$($a$)$

If the demand probabilities are $0\mathrm{.}2,0\mathrm{.}5,$ and $0\mathrm{.}3,$ for high, medium and low demand respectively, which decision alternative will minimize the expected cost of the data warehouse? What is the expected annual cost associated with that recommendation? $($Enter your answers in dollars.$)$

EV$($Own staff$)=$ $

$735$

Incorrect: Your answer is incorrect.

EV$($Outside vendor$)=$ $

$670$

Incorrect: Your answer is incorrect.

EV$($Combination$)=$ $

$735$

Incorrect: Your answer is incorrect.