Managers at Art's Custom Saddle Manufacturers believe that the learning rate for new employees is about 90%. If it takes a new employee 10 hours to make the first saddle, estimate the cumulative average time per saddle for a new employee to make four saddles. Use the following values as needed to respond:
Ln(95%)/ ln(2)= -0.074
Ln(90%)/ ln(2)= -0.152
Ln(85%)/ ln(2)= -0.234
Ln(80%)/ ln(2)= -0.322
Ln(75%)/ ln(2)= -0.415
Ln(70%)/ ln(2)= -0.515
A)8)1 hours per saddle
B)5)3 hours per saddle
C)7)6 hours per saddle
D)Cannot be determined

Question

Quizplus · Accepted Answer

The learning rate is 90%, which means that each time the employee doubles their output, the time it takes to produce each unit decreases by 10%. So, to make the second saddle, it will take 90% of the time it took to make the first saddle, or 9 hours. To make the third saddle, it will take 90% of the time it took to make the second saddle, or 8.1 hours. To make the fourth saddle, it will take 90% of the time it took to make the third saddle, or 7.29 hours. The cumulative average time per saddle is the total time it takes to make all four saddles divided by the number of saddles, or (10 + 9 + 8.1 + 7.29) / 4 = 8.1 hours per saddle.

Managers at Art's Custom Saddle Manufacturers Believe That the Learning