Mary Schultz Is the Incumbent Senator from Ohio and John

question 60

Short Answer

Mary Schultz is the incumbent senator from Ohio and John Henderson is her opponent in the upcoming election. Since Mr. Henderson is seeking to unseat Ms. Schultz, he is on the offensive, while Ms. Schultz hopes to minimize his gains or her losses in the election. The following payoff table shows the various percentage point gains/losses in the polls for the two candidates based on their selection of certain political strategies. $$\begin{array} { l c c c } & & { \text { Mary Schult'z Defensive Strategies } } \\& & \text { Strategy A } & \text { Strategy B } \\\hline \text { John Henderson's } & \text { Strategy 1 } & 7 & 3 \\\text { Offensive Strategies } & \text { Strategy 2 } & 6 & 10 \\\hline\end{array}$$
Use the expected gain and loss method and determine the equilibrium point.

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