actuarial problem... NEED HELP
1. a recent study indicates that the annual cost of maintaining and repairing a car in town in ontario averages 200 with a variance of 260. If a tax of 20% is introduced on all items associated with the maintainance and repair of cars, what will be the variance of the annual cost of maintaining and repairing a car?
2. A tour operator has a bus that can accomodate 20 tourists. the operator knows that tourists may not show up, so he sells 21 tickets. the probability that an individual tourist will not show up is .02, independent of the other tourists. Each ticket costs $50 and id nonrefundable if a tourist fails to show up. if a tourist shows up and a seat is not avaialble, the tour operator has to pay $100 (ticket cost plus $50 penalty) to the tourist. What is the expected revenue of the tour operator?
if you can help me navigate these problems it'd be wonderful!
