Question: 1.3 Using the data in Exercise 1.1, calculate Var(Y), Var(S), Var(T), and Cov(S, T) and verify that Var(Y) = 250,000 Var(X) + 40,000 Var(T) +

1.3 Using the data in Exercise 1.1, calculate Var(Y), Var(S), Var(T), and Cov(S, T) and verify that Var(Y) = 250,000 Var(X) + 40,000 Var(T) + 200,000 Cov(S, T), explaining analytically why this should be the case.

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