Question

Auto-Moto receives about 1000 loan applications per month (30working days). All applications go through an Initial Review sub-process, where the applications are then classified as A (looks excellent), B (needs more detailed evaluation), and C (reject summarily). A and B applications would be forwarded to sub-processes A and B, respectively. On average, 18% of all applications go through Sub-process A, 30% go through sub-process B, and the rest are rejected. On average, 50% of applications in sub-process A, and 10% of applications in sub-process B are accepted and the rest are rejected. (Recall that all Cs were rejected.) On average 100 applications are in the Initial Review sub-process, 20 are in sub-process A, and 40 applications are in sub-process B.

1. What is the average flow time of an application? The potential answers are:

A: 12 days.

B: 7.68 days.

C: 9 days.

D: 4.8 days.

E: 4.74 days.

2. How many applications are rejected per month? The potential answers are:

A: 880 applications.

B: 480 applications.

C: 570 applications.

D: 684 applications.

E: 734 applications.

3. Compute the average flow time at Initial Review sub-process. The potential answers are:

A: 5 days.

B: 3 days.

C: 6.75 days.

D: 4.8 days.

E: 2.2 days.

4. Compute the average flow time at sub-process A. The potential answers are:

A: 11.11 days.

B: 3.33 days.

C: 6 days.

D: 3 days.

E: 2.86 days.

5. Compute the average flow time at sub-process B. The potential answers are:

A: 5 days.

B: 2 days.

C: 4 days.

D: 6 days.

E: 1.67 days.

6. Compute the average flow time of an accepted application. The potential answers are:

A: 6.26 days.

B: 18.4 days.

C: 17.2 days.

D: 17 days.

E: 6.5 days.

7. Compute the average flow time of a rejected application. The potential answers are:

A: 12.18 days.

B: 11.71 days.

C: 10.75 days.

D: 6.32 days.

E: 4.57 days.

8. Using which one of the following numbers can you prove that the flow times that you have found for accepted and rejected applications are correct? The potential answers are:

A: 4.8

B: 7.68

C: 9

D: 9.15

E: 4.74

PLEASE answer all but especially 6,7 and 8! please show work

Answer 1

QUES NO 2

REJECTED APPLICATIONS PER MONTH = 880

APPLICATIONS 1000 AB A B TOTAL L SUBPROCESS ACCEPTED REJECTED 18% 50% 30% 10% 180 90 300 30 120 880