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Please state what exactly the answer is in the format given and how you get it, thanks. Problem 13-07 (Algorithmic) Hudson Corporation is considering three
Please state what exactly the answer is in the format given and how you get it, thanks.
Problem 13-07 (Algorithmic) 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 demand as follows Staffing options Own staff Outside vendor Combination Demand High Medium Low 600 650 650 650 900 800 500 350 500 a. If the demand probabilities are 0.3, 0.5, and 0.2, which decision alternative will minimize the expected cost of the data processing operation? Own staff d annual cost associated with that recommendation? If rerequired, round your answer to the nearest dollar. Outside vendor CombinationStep by Step Solution
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