The first product took 10 hours to build and the learning curve is estimated to be 90%. How long with it take to make the fourth unit?
A) 10 hours
B) 9 hours
C) 8.1 hours
D) 7.5 hours
E) none of the above

Question

Quizplus · Accepted Answer

According to the learning curve formula, the time required to build the fourth unit is:
Time for the fourth unit = Time for the first unit x (Fourth unit's cumulative production / First unit's cumulative production) to the power of (log of the learning rate / log of 2)
The cumulative production for the fourth unit is 4, and the cumulative production for the first unit is 1. The learning rate is 90%, or 0.9. 
So, Time for the fourth unit = 10 x (4/1)^log(0.9)/log(2) = 8.1 hours (rounded to one decimal place)

The First Product Took 10 Hours to Build and the Learning