1.You work at the Transportation Security Administration in Washington D.C.One goal of your organization is improved security at small international airports, like the one in Watertown, NY.While you have a particular interest in increasing utilization of updated body-scan technology, you want to help small airports invest in other ways as well.You plan to offer two grant options under your new program (with each airport allowed to apply for just one) to give airports some flexibility.

You ask two of your analysts, Carolyn and Peter, to provide you with suggested grant programs.

Carolyn suggests the following program that allows airports to apply for either:

(A)a $750,000 grant to be spent on body-scan technology, or

(B)a $500,000 lump-sum grant

Peter suggests instead a program that allows airports to apply for either:

(A)a $500,000 matching grant toward body-scan tech, as long as the airport also invests $500,000 of its own money, or

(B)a $700,000 lump-sum grant

Peter suggests to you that his program is superior on cost grounds, since the average grant under Carolyn's options would cost $625,000 and under his would only cost $600,000.

Put yourself in Carolyn's place and explain (a) the flaw in Peter's reasoning and (b) the types of airports that would prefer each of her two types of grants