Hudson Corporation is considering three options for managing its data processing operation: continuing with its own staf

[answerhappygod]

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
on-demand as follows:
Demand
Staffing Options
S1 - High
S2 - Medium
S3 - Low
d1 - Own staff
650
650
600
d2 - Outside vendor
900
600
300
d3 - Combination
800
650
500
If the decision-maker knows nothing about the
probabilities of the three states of nature, what is the
recommended decision using:
(a) the optimistic approach?
(b) the conservative approach?
(c) Fill in a minimax regret table on your scrap
paper. Put the Maximum Regrets in the table
below.
Staffing Options
Max Regret
Cost, ($1000s)
d1 - Own staff
d2 - Outside vendor
d3 - Combination
(d) What is the recommended decision minimax regret
approach?