be Refer to the Tippi-Toes decision in Table 5-5. 5-8 Suppose that reduction in the development cost of the gears-and-levers movement allows a $50,000 increase in all payoffs for that act. In addition, an upward revision of unit sales when demand is heavy results in a further $100,000 increase in all payoffs for that event. Finally, the following re- vised probabilities now apply to the demand lev- els: light, .50; moderate, .30; and heavy, .20. (a) Construct the new Tippi-Toes payoff table. (b) Determine the maximin payoff act. (c) Determine the maximum likelihood act. (d) Calculate the expected payoffs. According to the Bayes decision rule, which act should be chosen? TABLE 5-5 Modified Payoff Table for the Tippi-Toes Decision ACT (choice of movement) EVENT Gears Spring (level of demand) and Levers Action Light $ 25,000 -$ 10,000 Moderate 400,000 440,000 Heavy 650,000 740,000 Weights and Pulleys -$125,000 400,000 750,000 be Refer to the Tippi-Toes decision in Table 5-5. 5-8 Suppose that reduction in the development cost of the gears-and-levers movement allows a $50,000 increase in all payoffs for that act. In addition, an upward revision of unit sales when demand is heavy results in a further $100,000 increase in all payoffs for that event. Finally, the following re- vised probabilities now apply to the demand lev- els: light, .50; moderate, .30; and heavy, .20. (a) Construct the new Tippi-Toes payoff table. (b) Determine the maximin payoff act. (c) Determine the maximum likelihood act. (d) Calculate the expected payoffs. According to the Bayes decision rule, which act should be chosen? TABLE 5-5 Modified Payoff Table for the Tippi-Toes Decision ACT (choice of movement) EVENT Gears Spring (level of demand) and Levers Action Light $ 25,000 -$ 10,000 Moderate 400,000 440,000 Heavy 650,000 740,000 Weights and Pulleys -$125,000 400,000 750,000