An insurance company has the following types of insureds: Type A: high risk insureds with a mean loss of 3,000 and a standard de
viation of 10. Type B: low risk insureds with a mean loss of 1,000 and a standard deviation of 5. You are given that 40% of the insureds are high risk. Determine the variance of the amount of loss that the insureds incur.
You would get this by first getting the fraction out of the denominator by multiplying the inverse by the numerator. Then you can cross multiply and solve.
