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	550	550	500
Outside vendor	800	500	200
Combination	700	550	400

(a)

If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data processing operation? What is the expected annual cost associated with that recommendation? (Enter your answers in dollars.)

EV(Own staff)=$(need answer here)

EV(Outside vendor)=$(need answer here)

EV(Combination)=$(need answer here)

The decision alternative that minimizes the expected cost is: Select one: (hiring an outside vendor), or (continuing with its own staff). The expected annual cost associated with this recommendation is $ (need answer here).

(b)

Construct a risk profile for the optimal decision in part (a). (Submit a file with a maximum size of 1 MB.)(please create a risk profile for me)

What is the probability of the cost exceeding $750,000? (need answer here)