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:

DemandStaffing OptionsHighMediumLowOwn staff650650600Outside vendor900600300Combination800650500(a)If the demand probabilities are 0.2, 0.5, and 0.3, which decision alternative will minimize the expected cost of the data warehouse?- Select your answer -Own staffOutside vendorCombinationItem 1What 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 = $(b)Construct a risk profile for the optimal decision in part (a).The input in the box below will not be graded, but may be reviewed and considered by your instructor.

What is the probability of the cost exceeding $700,000?If required, round your answer to two decimal places.Probability =