medium · GMAT Quant

A bank processes loan applications through three branches: Urban, Suburban, and Rural. The Urban branch processes 60 percent of applications, the Suburban branch 30 percent, and the Rural branch 10 percent. The probability of an application containing an error is 0.05 for Urban, 0.03 for Suburban, and 0.02 for Rural.

What is the probability that a randomly selected application contains an error?

  1. 0.041
  2. 0.033
  3. 0.050
  4. 0.100
  5. 0.026

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