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

Staffing Options High Medium Low

Own staff 600 550 350

Outside vendor 900 650 450

Combination 700 600 400

If the demand probabilities are 0.4, 0.25, and 0.35, which decision alternative will minimize the expected cost of the data warehouse?

What is the expected annual cost associated with that recommendation? Enter your answer in thousands dollars. For example, an answer of $200 thousands should be entered as 200,000

.Expected annual cost = $

What is the probability of the cost exceeding $575,000 ?If required, round your answer to two decimal places.

Probability =