A manager wants to analyze the learning curve associated with producing one of his company's products.Accordingly,he has gathered the following data: How long did it take to produce the first unit?
A) 5 hours
B) 6 hours
C) 6.25 hours
D) 6.33 hours
E) 6.5 hours

Question

A manager wants to analyze the learning curve associated with producing one of his company's products.Accordingly,he has gathered the following data:  How long did it take to produce the first unit?
A) 5 hours 
B) 6 hours 
C) 6.25 hours 
D) 6.33 hours 
E) 6.5 hours

Quizplus · Accepted Answer

Since the learning curve is being analyzed, it can be assumed that each subsequent unit will take less time to produce as workers become more efficient with practice. Using the data given, the time required to produce the second unit is 5.5 hours, indicating an 11.9% decrease in time. Applying this percentage decrease to the first unit's time (6.25/0.881= 7.08) gives an estimated time of 7.08 hours for the first unit. However, since this is an estimation, the closest answer choice is C) 6.25 hours.

A Manager Wants to Analyze the Learning Curve Associated with Producing