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?
A) 20,500.00.
B) 16,810.00.
C) 13,784.20.
D) 11,303.04.

Question

Quizplus · Accepted Answer

The expected unit time for the sixteenth aircraft can be calculated using the formula for the learning curve effect: $T_n = T_1 \times n^{log(b)}$, where $T_n$ is the time required for the nth unit, $T_1$ is the time required for the first unit, $n$ is the unit number, and $b$ is the learning curve percentage (in decimal form). Given $T_1 = 25,000$ hours, $b = 0.82$, and $n = 16$, we find $T_{16} = 25,000 \times 16^{log(0.82)}$, which calculates to approximately 11,303.04 hours.

Condor Airplane Company Has Built a New Model Jet Aircraft