We are given the following information:
- The mean of the five observations is 4.
- The variance of the five observations is 5.2.
- Three of the observations are 1, 2, and 6.
Step 1: Use the mean formula
The mean of the five observations is given by:
\[
\frac{1 + 2 + 6 + x + y}{5} = 4
\]
Simplifying:
\[
\frac{9 + x + y}{5} = 4
\]
Multiplying both sides by 5:
\[
9 + x + y = 20
\]
Thus:
\[
x + y = 11
\]
Step 2: Use the variance formula
The variance is given by:
\[
\frac{1}{5} \left[ (1 - 4)^2 + (2 - 4)^2 + (6 - 4)^2 + (x - 4)^2 + (y - 4)^2 \right] = 5.2
\]
This simplifies to:
\[
\frac{1}{5} \left[ 9 + 4 + 4 + (x - 4)^2 + (y - 4)^2 \right] = 5.2
\]
Simplifying further:
\[
\frac{17 + (x - 4)^2 + (y - 4)^2}{5} = 5.2
\]
Multiplying both sides by 5:
\[
17 + (x - 4)^2 + (y - 4)^2 = 26
\]
Thus:
\[
(x - 4)^2 + (y - 4)^2 = 9
\]
Step 3: Solve the system of equations
We now have the system of equations:
1. \( x + y = 11 \)
2. \( (x - 4)^2 + (y - 4)^2 = 9 \)
Expanding the second equation:
\[
(x - 4)^2 + (y - 4)^2 = (x^2 - 8x + 16) + (y^2 - 8y + 16) = 9
\]
Simplifying:
\[
x^2 + y^2 - 8x - 8y + 32 = 9
\]
\[
x^2 + y^2 - 8x - 8y = -23
\]
Substitute \( x + y = 11 \) into the equation:
\[
x^2 + y^2 - 8(11) = -23
\]
\[
x^2 + y^2 - 88 = -23
\]
\[
x^2 + y^2 = 65
\]
Now, use the identity \( (x + y)^2 = x^2 + y^2 + 2xy \) to find \( xy \):
\[
(11)^2 = 65 + 2xy
\]
\[
121 = 65 + 2xy
\]
\[
2xy = 56
\]
\[
xy = 28
\]
Step 4: Solve for \( x \) and \( y \)
Now, we solve the quadratic equation:
\[
t^2 - (x + y)t + xy = 0
\]
Substitute \( x + y = 11 \) and \( xy = 28 \):
\[
t^2 - 11t + 28 = 0
\]
Solving this quadratic equation:
\[
t = \frac{11 \pm \sqrt{11^2 - 4 \times 1 \times 28}}{2} = \frac{11 \pm \sqrt{121 - 112}}{2} = \frac{11 \pm \sqrt{9}}{2} = \frac{11 \pm 3}{2}
\]
Thus, the solutions are:
\[
t = \frac{11 + 3}{2} = 7 \quad {and} \quad t = \frac{11 - 3}{2} = 4
\]
Thus, the other two observations are 4 and 7.
Therefore, the correct answer is Option C.