Auto-Moto receives about 600 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, 25% of all applications go through Sub-process A, 30% go through sub-process B, and the rest are rejected. On average, 70% 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 30 applications are in sub-process B.

1. Compute the average flow time of an accepted application.

2. Compute the average flow time of a rejected application.

3. 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?

SHOW YOUR WORK