Need help with following two problems:

1. Suppose the life span of a particular [shoddy] server is a oontinuous random variable with a uniform probability distribution between [I and 1 year. The server comes with a contract that guarantees you money if the server lasts less than 1 year. In particular, if the sen'er lasts t years, the manufacturer will pay you a" = $l ing. lCompute the expected payout from the contract. 2. Suppose that you are planning an investment in three dierent companies. The payoff per unit you invest in each company is represented by a random variable. A represents the payoff per unit invested in the rst company, B in the second, and C in the third. A, B, and C are independent of each other. Furthermore, oor[A} : 2vor(B} : Boar[C). You plan to invest a total of one unit in all three companies. You will invest amount a in the rst company, I} in the second, and c in the third, where a, b,c E [0,1] and a + b+ c = 1. Find, the values of a, b, and c that minimize the variance of your total payoff.|