15. The Lake Placid Town Council decided to build a new community center to be used forconventions, concerts, and other public events, but considerable controversy surrounds theappropriate size. Many influential citizens want a large center that would be a showcase forthe area. But the mayor feels that if demand does not support such a center, the communitywill lose a large amount of money. To provide structure for the decision process, the coun-cil narrowed the building alternatives to three sizes: small, medium, and large. Everybodyagreed that the critical factor in choosing the best size is the number of people who will wantto use the new facility. A regional planning consultant provided demand estimates underthree scenarios: worst case, base case, and best case. The worst-case scenario correspondsto a situation in which tourism drops substantially; the base-case scenario corresponds to asituation in which Lake Placid continues to attract visitors at current levels; and the best-case scenario corresponds to a substantial increase in tourism. The consultant has providedprobability assessments of 0.10, 0.60, and 0.30 for the worst-case, base-case, and best-casescenarios, respectively.The town council suggested using net cash flow over a 5-year planning horizon as thecriterion for deciding on the best size. The following projections of net cash flow (in thou-sands of dollars) for a 5-year planning horizon have been developed. All costs, including theconsultant's fee, have been included.Demand ScenarioWorstBaseBestCenter SizeCaseCaseCaseSmall400500660Medium-250650800Large-400580990a.b.What decision should Lake Placid make using the expected value approach?Construct risk profiles for the medium and large alternatives. Given the mayor's con-cern over the possibility of losing money and the result of part (a), which alternativewould you recommend? c. Compute the expected value of perfect information. Do you think it would be worthtrying 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 probabilityof the base-case scenario decreases to 0.5, and the probability of the best-case sce-nario remains at 0.3. What effect, if any, would these changes have on the decisionrecommendation?e. The consultant has suggested that an expenditure of $150,000 on a promotional cam-paign over the planning horizon will effectively reduce the probability of the worst-casescenario to zero. If the campaign can be expected to also increase the probability of thebest-case scenario to 0.4, is it a good investment?

Answered: Image /qna-images/answer/b20c916c-bef2-4d40-8cd7-9ce024770a98.jpg

Answered: 15. The Lake Placid Town Council…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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In the city of Milford, applications for zoning changes go through a two-step process: areview by the planning commission and a final decision by the city council. At step 1 theplanning commission reviews the zoning change request and makes a positive or negativerecommendation concerning the change. At step 2 the city council reviews the planningcommission’s recommendation and then votes to approve or to disapprove the zoningchange. Suppose the developer of an apartment complex submits an application for azoning change. Consider the application process as an experiment.a. how many sample points are there for this experiment? list the sample points.b. Construct a tree diagram for the experiment.
In the city of Milford, applications for zoning changes go through a two-step process: areview by the planning commission and a final decision by the city council. At step 1 theplanning commission reviews the zoning change request and makes a positive or negativerecommendation concerning the change. At step 2 the city council reviews the planningcommission’s recommendation and then votes to approve or to disapprove the zoningchange. Suppose the developer of an apartment complex submits an application for azoning change. Consider the application process as an experiment.a. how many sample points are there for this experiment? list the sample points
In the city of Milford, applications for zoning changes go through a two-step process: a review by the planning commission and a final decision by the city council. At step 1, the planning commission reviews the zoning change request and makes a positive or negative recommendation concerning the change. At step 2, the city council reviews the planning commission's recommendation and then votes to approve or to disapprove the zoning change. Suppose the developer of an apartment complex submits an application for a zoning change. Consider the application process as an experiment. (a) How many sample points are there for this experiment? List the sample points. (Select all that apply.) council approves-planning commission positivecouncil disapproves-planning commission negativeplanning commission negative-council disapprovescouncil disapproves-planning commission positivecouncil approves-planning commission negativeplanning commission positive-council approvesplanning commission…
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The human resources director received 101 applications from people with thegiven information. 42 with sales experience 40 with a college degree 47 with a real estate license 14 with sales experience and a college degree 15 with sales experience and a real estate license 17 with a college degree and a real estate license 10 with sales experience, a college degree, and a real estate license a) How many applicants had neither sales experience, a college degree, nor a realestate license? b) How many applicants did not have sales experience? c) How many had sales experience and a college degree, but not a real estatelicense?
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