In: Finance
If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.75, how fast can they be expected to finish all ten units?
A) 213.52 hours
B) 208.48 hours
C) 223.54 hours
D) 218.46 hours
The option (c) is correct.
Calculation:
We know that time needed to produce n unit:
TN=T1(N^b)
Here b=log.75/log2
The hours required to produce the third unit may be computed
T1= 40*1^−0.41503749 40
T2= 40*2^−0.41503749 30
T3= 40*3^−0.41503749 25.36
T4= 40*4^−0.41503749 22.5
T5= 40*5^−0.41503749 20.6
T6= 40*6^−0.41503749 19.01
T7= 40*7^−0.41503749 17.84
T8= 40*8^−0.41503749 16.87
T9= 40*9^−0.41503749 16.07
T10= 40*10^−0.41503749 15.38
Tt = 223.54 hours.
Hence, option (c) is correct.
The option (c) is correct.