Final answer:
The system is performing between the practical worst case scenario and the best case scenario, with the average cycle time of 5 minutes being better than the practical worst case of 7 minutes.
Step-by-step explanation:
Considering the information provided, we could conclude that we are between the practical worst case scenario and the best case scenario. This conclusion derives from the fact that with a Work in Process (WIP) of 10, the average cycle time is 5 minutes, which is better than the practical worst case cycle time of 7 minutes. If the system were performing at the worst case scenario, cycle times would exceed 7 minutes. Therefore, the current state of the system is operating above the practical worst case but has not achieved the best case, which would likely be indicated by a lower cycle time closer to or better than the current average.