The first unit of production takes 20 hours to produce and the learning rate is expected to be 90 percent. How long will it take to produce the eighth unit?
A) less than or equal to 12.0 hours
B) greater than 12.0 hours but less than or equal to 15.0 hours
C) greater than 15.0 but less than or equal to 18.0 hours
D) greater than 18.0 hours

Question

Quizplus · Accepted Answer

Using the 90 percent learning rate, we can use the formula Tn = T1 * n^log(0.9), where Tn is the time to produce the nth unit, T1 is the time to produce the first unit (20 hours), and "log(0.9)" is the logarithm of 0.9 base n, where n is the number of units being produced. Thus, for the eighth unit, we have:

T8 = 20 * 8^log(0.9)
T8 ≈ 14.5 hours

Therefore, the answer is B, as it is greater than 12.0 hours but less than or equal to 15.0 hours.

The First Unit of Production Takes 20 Hours to Produce