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    Variance of total repair costs in 2012 for fixing cars after accidents

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    The cost of fixing car after an accident can be broken into 2 components: parts X, and labor Y. For 2010, you are given that E(x)=1,250, E(X^2)=1,800,000 and E(Y)=350, E(Y^2)=250,000. Var(X+Y)=875,000

    For 2011 the cost of parts will be 4% lower uniformly while labor will be 6% higher uniformly. Calculate the variance of total repair costs in 2012.

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    Solution Preview


    var = E(x^2)-E(x)^2
    var(x) = 1,800,000-1250^2
    var(y) = ...

    Solution Summary

    The expert calculates the variance of total repair costs for fixing cars after accidents.