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Troyanec [42]
3 years ago
11

Consider a process restringing tennis rackets. The process starts with a unit cost of $10 for the first unit—that is, c(1) = 10—

and a learning rate of LR = 0.9. What will be the unit cost for the 35th unit?
Business
1 answer:
geniusboy [140]3 years ago
4 0

Answer:

The correct answer is $5.83.

Explanation:

According to the scenario, the given data are as follows:

Cost for 1st unit (C1) = $10

Learning rate (LR) = 0.9

So, we can find the unit cost for 35th unit by using logarithmic approach as follows:

C_{N} = C_{1} N^{b}

Where, C_{N} = C is for cost and N is for number of unit

C_{1} = Cost of 1st unit

N^{b} = N is for number of unit and b is for slope of learning curve.

So, b = (Log of the learning rate) / (Log 2)

So, by putting the value, we get

C_{35} = $10 × 35^{\frac{Log 0.9}{log 2} }

= $10 × 0.583

= $5.83

Hence, the unit cost for the 35th unit will be $5.83.

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