Scenario: The Pan American Sports Organization is currently soliciting bids from interested cities to host the 2027 Pan American Games (Pan Am Games). The Pan Am Games is a large sports event that lasts for approximately two weeks and features over 6,000 athletes from North and South American nations competing in almost 400 Summer Olympic style events across 40+ different sports such as swimming, track & field, gymnastics, basketball, and many more. The event takes place every four years and is held in the year before the Summer Olympics. The first Pan Am Games was held in Buenos Aires, Argentina in 1951. The 2023 edition of the Pan Am Games will be held in Santiago, Chile. A U.S. city has not hosted a Pan Am Games since Indianapolis hosted the event in 1987.

The city of Louisville, KY is thinking of bidding on host rights for the 2027 Pan Am Games. Local government officials are excited about the possibility of bringing almost a million people, including fans, athletes, coaches, media, and sponsors, to the city for two weeks of athletic competition. They are excited about the injection of revenue this amount of people will bring to the local economy, not to mention the great publicity Louisville would receive as the host city of a major international sporting event. However, local government officials are also concerned about the expense of hosting such a large-scale event. Preliminary estimates suggest the need for $250 million in public cost to construct new facilities, develop an athlete village area, improve infrastructure, and cover general operating and logistic expenses.

To determine the feasibility of hosting the 2027 Pan Am Games, city government officials know they need more information to deliver objective, data-driven decisions. They have hired you, a Senior Analyst at Cocco Consultants, to provide them with this information.

Your job is to submit a professional report to Louisville Metro Government that provides the following information:

Based on the scenario above answer the following questions below :

3) Louisville Metro Government would like to understand the potential for economic impact that could be generated from hosting a major international sport event. To help local government officials better understand economic impact analyses, provide the following information: (a) Outline the standard economic impact formula and explain the key components included in that formula.

(b) Explain the main outputs generated from an economic impact analysis.

(c) Create an example spectator survey that could be used to collect data for conducting an economic impact analysis if the Pan Am Games were to be held in Louisville. Attach this example spectator survey as an appendix to your report.

4) In addition to economic impact, local government officials are also interested in the concept of psychic income that could be generated for the Louisville community due to the city hosting a major international sport event. Provide government officials with the following information about psychic income: (a) A detailed explanation of the psychic income concept. What does it mean? Why is it described as a form of income?

(b) Highlight the key components of the psychic income phenomenon. Which components are most likely to generate psychic income for the citizens of Louisville within this scenario