The Lock Box Department at Bank 21 Handles the Processing

question 64

Multiple Choice

The lock box department at Bank 21 handles the processing of monthly loan payments to the bank, monthly and quarterly premium payments to a local insurance company, and bill payments for 85 of the bank's largest commercial customers. The payments are processed by machine operators, with one operator per machine. An operator can process one payment in 0.25 minute. Setup times are negligible in this situation. A capacity cushion of 20 percent is needed for the operation. The average monthly (not annual) volume of payments processed through the department currently is 400,000. However, it is expected to increase by 20 percent. The department operates eight hours per shift, two shifts per day, 260 days per year. How many machines (not operators) are needed to satisfy the new total processing volume? (Round up to the next whole integer.)

• A) less than 7
• B) 7
• C) 8
• D) more than 8

---

Definitions:

Scatter

The distribution of multiple data points in a two-dimensional graph, often used to observe and visually display the relationship between two quantitative variables.

Cracks Per Bar

A metric specifically used to quantify the number of cracks identified in a single bar of material, often used in quality control and materials testing.

Standard Deviation

A measure of the dispersion or variability around the mean in a set of data, indicating how spread out the data points are.

Mode

The value or values that occur most frequently in a data set.