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

MONETARY VALUE UTILITY

−$4,800 0.00

−$2,900 0.10

−$2,400 0.12

−$1,000 0.15

−$ 500 0.19

$ 0 0.21

$1,900 0.26

$2,400 0.30

$4,800 1.00

(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 42?