Question

(1) Let us suppose it costs $70 to produce the 80th unit, assuming a learning rate of 95%, determine the cost of the 160th unit.

(2) If the 4th unit took 24 hours to produce, and the 20th unit took 19 hours to produce, what would the learning rate be? Note: Express your answer in decimal places, i.e., if your answer is 40.56%, enter in 0.4056.

(3) Let us suppose it costs $500 to produce the 120th unit, assuming a learning rate of 83%, determine the cost of the 60th unit. Hint: This question may seem like it does not provide enough information. But if you apply the definition of the learning rate r variable, you should be able to solve this question.

(4) A maintenance activity took 60 minutes for the first repair, and historical records suggest that this activity follows a 70% learning curve. Estimate the time required to complete the fourth repair.

(5) Suppose that the first unit of a product costs a firm $200, and the 10th unit costs $175. What should the 70th unit cost?

(6) A maintenance activity took 60 minutes for the first repair, and historical records suggest that this activity follows a 70% learning curve. Estimate the total time required to complete the first four repairs. Hint: You may find setting up an excel table to make calculating this problem faster.

(7) Let us suppose it takes 80 minutes to make the 4th unit. And 75 minutes to produce the 8th unit. What is the learning rate r. Hint: there are two ways to solve this problem. The slow method is to solve for a then r. Alternatively, you can think critically about the definition of r and make a deduction. Note: leave your answer in decimal place, if your answer is 12.34%, you should record your answer as 0.1234

(8) Suppose that the cost to produce the first unit of a product is $800, and the firm expects to experience 70% learning rate. What should the 50th unit cost? (9) It takes 120 days to produce the 12th unit. It takes 85 days to produce the 15th unit. Determine the number of days it would take to produce the 20th unit.

PLEASE HELP ME HOW TO SOLVE THIS PROBLEM!!!!

Answer 1

Answering the first question as per Chegg policy

(1) Let us suppose it costs $70 to produce the 80th unit, assuming a learning rate of 95%, determine the cost of the 160th unit.

Answer: Given that, learning curve = L = 95% = 0.95

For the n^th unit, Cost = Cost for one unit x n^{(ln L / ln 2)}

Given that, C80 = C1 x 80^{(ln L / ln2)}

70 = C1 x 80^{(ln 0.95 / ln2)}

70 = C1 x 80^-0.074

C1 = 70 / 0.7230 = $96.81

Now,

C160 = C1 x 160^{(ln L / ln2)}

= 96.81 x 160^-0.074

= $66.50 = Cost of the 160th unit​​​​