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Let X denote the size of a bodily injury claim and Y denote the size of...

Let X denote the size of a bodily injury claim and Y denote the size of the corresponding property damage claim. Let Z1 = X + Y. From prior experience we know Var(X) = 144, Var(Y) = 64 and Var(X + Y) = 308. It is expected that bodily injury claims will rise 10% next year and property damage will rise by a fixed amount of 5. Let Z2 be the new trial of bodily injury and property damage. Compute Cov(Z1, Z2 ).

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