What is average processing time required for rejected loan

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Reference no: EM132206303

MBPF Bank on the average receives 20 loan applications per hour. Each loan application goes through an initial processing stage, where an "accept" or "reject" decision is made. Approximately 85% of the loans are accepted. Accepted loans require additional processing. Rejected loans require no additional processing. Suppose that on the average 6 loans applications are in the initial processing stage, and 25 accepted loan applications are in an additional processing stage.

1. What is the average processing time required for a rejected loan?

The potential answers are:

A: 18 minutes.

B: 14.55 minutes.

C: 13.5 minutes.

D: 30 minutes.

E: 11 minutes.

2. What is the average processing time required for an accepted loan?

The potential answers are:

A: 106.24 minutes.

B: 84.48 minutes.

C: 67.85 minutes.

D: 132.27 minutes.

E: 49.46 minutes.

3. What is the average processing time required for a loan application?

The potential answers are:

A: 76.8 minutes.

B: 60 minutes.

C: 51 minutes.

D: 93 minutes.

E: 41 minutes.

Reference no: EM132206303

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