PLEASE SHOW HOW THIS WAS ANSWERED USING EXCEL AND EXCEL FUNCTIONS

A small building contractor has recently experienced two successive years in which work opportu- nities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below. Which alternative should be selected ? NEXT YEAR'S DEMAND Alternative Low High $60 80 Do nothing $50* Expand 20 Subcontract 40 *Profit in $ thousands. 70 Refer the given problem, suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low and high demand: P(low) = 0.30 and P(high) = 0.70 a. Determine the expected profit of each alternative. Which alternative is best? Why? b. Analyze the problem using a decision tree. Show the expected profit of each alternative on the tree. Refer to the given problem, Construct a graph that will enable you to perform sensitivity analysis on the problem. Over what range of P(high) would the alternative of doing nothing be best? Expand? Subcontract