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Business, 28.04.2021 18:30 Derick21

An insurance policy pays a total medical benefit consisting of two parts for each claim. Let X represent the part of the benefit that is paid to the surgeon, and let Y represent the part that is paid to the hospital. The variance of X is 1000, the variance of Y is 2000, and the variance of the total benefit, X Y , is 4000. Due to increasing medical costs, the company that issues the policy decides to increase X by a flat amount of 100 per claim and to increase Y by 10% per claim. Calculate the variance of the total benefit after these revisions have been made.

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