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Kang Corporation is considering three options for managing its data processing operation: continuing with its own staff, hiring an outside vendor to do the managing

Kang 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 demand as follows.
Demand
Staffing Options High Medium Low
Own staff 600600550
Outside vendor 850550250.
Combination 750600450.(b)
Construct a risk profile for the optimal decision

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