Question

A bank has set a standard that mortgage applications be processed within a certain number of days of filing. If, out of a sample of 2,500 applications, 85 fail to meet this requirement, what is the epmo metric and what sigma level does it correspond to?

Answer 1

The epmo metric will be 0.034

Step-by-step explanation:

We have given there are a sample of 2500 applicants

So total number of applicants = 2500

In which 85 fail to meet the requirement

So the number of applicants who fail to meet the requirement = 85

We have to find the epmo metric

We know that epmo metric is given by

Epmo metric
`=(number\ of\ applicants\ who\ fail\ to\ meet\ the\ requirement)/(total\ number\ of\ applicants)=(85)/(2500)=0.034`

So the epmo metric will be 0.034