Answer Happy

Hudson Corporation is considering three options for managing itsdata processing operation: continuing with its own staff, hiring anoutside vendor to do the managing (referred to as outsourcing), orusing a combination of its own staff and an outside vendor. Thecost of the operation depends on future demand. The annual cost ofeach option (in thousands of dollars) depends on demand asfollows.
(a)
If the demand probabilities are 0.2, 0.5, and 0.3, whichdecision alternative will minimize the expected cost of the dataprocessing operation? What is the expected annual cost associatedwith that recommendation? (Enter your answers in dollars.)
EV(Own staff)=$ EV(Outsidevendor)=$ EV(Combination)=$ The decision alternative thatminimizes the expected cost is ---Select--- hiringan outside vendor using a combination of its own staff and anoutside vendor continuing with its ownstaff . The expected annual cost associated with thisrecommendation is $ .
(b)
Construct a risk profile for the optimal decision in part (a).(Submit a file with a maximum size of 1 MB.)
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What is the probability of the cost exceeding $750,000?