please gove step by step answer of this question.

specifically (b)

15. The Lake Placid Town Council decided to buidd a new community center to be used for coaventions, concerts, and other puhlic events, but coasiderable controversy surounds the appropriase sire. Many influenfial citizeas want a large center that would be a showeace for the area. But the mayor feels that if demand does not support ruch a center, the community will lose a large amount of moncy. To provide structure for the decision process, the council narrwwed the building aliematives to three sizes: small, medium, and large. Everybody agreed that the critical fector in choosing the best size is the number of people who will want to use the new facility. A regional planning consultant provided demand estimates under three scenarios: worst case, base case, and best case. The wont-case scenarho Chapter 4 Decision Analysis cocresponds to a situation in which toarism drops substantially; the base-case secnario corresponds to a situation in which Lake Placid continues to attract Wiitors at current levels: and the bes-case scenario corresponds to a substantial incrcase in fourism. The consultant has provided peobability assessments of 0.10,0.60, and 0.30 for the worst-case, base-case, and best-case scenarion, respectively. The town coencil suggested using net cash flow over a 5 -ycar planaing honzon as the criterion for deciding on the best size. The following projections of net cash flow (in thousands of dollars) for a 5-year planning borizon have bech developed. All costs, includige the consultant's fee, have been included. a. What decision should Lake Placid make using the expected value approach? b. Construct risk profiles for the medium and large alternatives. Given the mayor's concern over the possibility of losing money and the result of part (a), which aliemative would you recommend? c. Compute the expected value of perfect information. Do you think it would be worth trying to obtain additional information concerning which scenario is likely to occur? d. Suppose the probability of the worst-case scenario increases to 0.2 the probability of the base-case scenario decreases to 0.5 , and the probability of the best-case seenario remains at 0.3. What effect, if any, would these changes have on the decision recommendation? c. The consultant has suggested that an expenditure of $150,000 on a promotional campaign over the planning horizon will effectively reduce the probability of the worstcase secnario to zero. If the campaign can be expected to also increave the probability of the best-case scenario to 0.4, is it a good investment