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When an individual is admitted to the hospital, the hospital charges have the following characteristics: (1) Charges Room Other Mean 1000 500 Standard Deviation

When an individual is admitted to the hospital, the hospital charges have the following characteristics: (1) Charges Room Other Mean 1000 500 Standard Deviation 500 300 (ii) The covariance between an individual's Room Charges and Other Charges is 100,000. An insurer issues a policy that reimburses 100% for Room Charges and 80% for Other Charges. The number of hospital admissions has a Poisson distribution with parameter 4. Determine the variance of the of the insurer's payout for the policy.

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