Let X and Y be two random variables with means 1 and 3 and variances 3 and 7, respectively. Consider the random variable W that is a weight average of X and Y, given by W= aX+(1-a)Y, where a = 0.08. Answer the following, rounding your answers to two decimal places. (a) What is the mean of 12W? Answer: (b) Assume that X and Y are independent. What is the variance of 12W? Answer: (c) Now assume that Cov(X,Y) = -1.7. What is the variance of 12W?

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