Question: 1.4 Using the data in Exercise 1.2, calculate Var(T), Var(P), Var(I) and Cov(P, I), and verify that Var(T) = 0.04Var(P) + 0.01Var(I) 0.04Cov(P, I),

1.4 Using the data in Exercise 1.2, calculate Var(T), Var(P), Var(I) and Cov(P, I), and verify that Var(T) = 0.04Var(P) + 0.01Var(I) – 0.04Cov(P, I), explaining analytically why this should be the case.

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