Jason Scott (see Problem 8-42) has decided to incorporate utility theory into his decision with his mortgage application. The following table describes Jason€™s utility function:

(a) How can you best describe Jason€™s attitude toward risk? Justify your answer.
(b) Will the use of utilities affect Jason€™s original decision in Problem 8-42?

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MONETARY VALUE UTILITY $4,800 $2,900 -$2,400 -$1,000 500 0.00 0.10 0.12 0.15 0.19 0.21 0.26 0.30 1.00 $1,900 $2,400 $4,800