An insurance agency wants to analyze its claims process. There are two steps in the process: evaluation and payment processing. When a customer claim arrives at the agency, it is first evaluated to see if it is a legitimate claim, where the customer would receive a payment. If it is indeed legitimate, the claim goes to payment processing, where additional checks are performed and the agency cuts a check to the customer. The agency on average receives 30 claims per day. There are on average 15 cases under evaluation and 24 cases in payment processing every day. Only 40% of the cases will pass evaluation and enter payment processing; the other cases are denied payment and terminated. What is the average total processing time per case in this agency?

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To determine the average total processing time per case in this agency we need to calculate the aver... View the full answer