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Calculate mean and variance of total claim amount

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Reference no: EM131214281

The number of claims N in a year has a discrete distribution: Pr[N=k]=0.1(4-k) for k=0,1,2,3. The amount for each claim has mean 300 and variance 30000. The distribution of amount per claim is independent of N. Calculate the mean and variance of the total claim amount.

Reference no: EM131214281

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