Question

Condor Airplane Company has built a new model jet aircraft which it intends to sell to high net worth clients. This aircraft required 25,000 hours to complete. Condor believes an incremental unit-time learning model with an 82% learning curve best reflects the company's production efficiency. Condor just received a contract to make fifteen identical aircraft. What will be the expected unit time for the sixteenth aircraft?

Answer 1

Answer:

11,303 Hrs

Explanation:

Now here, we can use the learning curve formula, which is as under:

Y = a *  X^ (log of learning rate / log 2)

Here

Y is the average time taken by each unit

a is the time taken by the first unit which is 25000 hrs

X is the number of units to be produced which is 16 unit (Including the first unit)

Learning Rate is given and is 82%

So by putting values we have:

Y = 25,000 hrs *  16 ^ (Log 0.82 / Log 2)

Y = 25,000 * 16^(-0.2863)

Y = 25,000 *  0.45212 = 11,303 Hrs