7.

10 points) Hudson Corporation is considering three options for its dat own staff, Option 2 -hiring an outside vendor, and Option 3-using a cembination of ies own staf cost of the operation depends on future demand. The annual cost of each option Gin thousands of soars) is the following payoff table processing operation Option 1- continue with ns and outside wendor The tabulated in Staffing options Own staff Outside vendor Combination High Medium a. (5 points) If the demand probabilities are 0.2, 0S, and 03 respectively, which decision alte will you recommend and why? b. (S points) Compute and interpret the value of Expected Value of Perfect information (EVPI) for managerial decision-making