Bay Land, Inc. has the following distribution of returns:
|
STATE
|
RETURN
|
PROBABILTIY
|
|
Boom
|
0.3
|
0.25
|
|
Normal
|
0.4
|
0.15
|
|
Bust
|
0.3
|
0.30
|
Assuming that these returns are normally distributed, what is the probability that Bay Land, Inc. will return less than 7.25%? Show all work, and clearly explain and state your answer