A bank is underwriting loans for small businesses. Currently, about 5 percent of the underwriting decisions are

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A bank is underwriting loans for small businesses. Currently, about 5 percent of the underwriting decisions are found to be incorrect when audited by the bank’s quality assurance department. The bank has a goal of reducing this number to 1 percent. What form of an improvement trajectory is most likely to occur? 

a. Exponential growth 

b. Exponential decay 

c. Diminishing return growth

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Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

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