Question: Auto - Moto receives about 8 0 0 loan applications per month ( 3 0 working days ) . All applications go through an Initial

Auto-Moto receives about 800 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, 16% 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 15% of applications in sub-process B are accepted and the rest are rejected. (Recall that all Cs were rejected.) On average 120 applications are in the Initial Review sub-process, 30 are in sub-process A, and 10 applications are in sub-process B.
1. What is the average flow time of an application? The potential answers are:
A: 6.4 days.
B: 6.12 days.
C: 7.5 days.
D: 6 days.
E: 9.5 days.

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