You are given the following:

• Claim frequency and claim size are independent
• Monthly claim frequency is Poisson distributed with mean 3
• The claim size distribution is uniform on [0,1000]

If [math]S[/math] is the annual loss, determine the variance of [math]S[/math]

• 8,000,000
• 10,500,000
• 11,000,000
• 12,000,000
• 13,000,000