The First Unit of a Product Took 50 Hours to Build

question 14

Multiple Choice

The first unit of a product took 50 hours to build, and the learning curve is 80%. How long will it take to make the third unit? (Use at least three decimals in the exponent if you use the formula approach.)

• A) under 30 hours
• B) about 32 hours
• C) about 35 hours
• D) about 50 hours
• E) about 75 hours

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Definitions:

Perfect Information

A state in which all participants in an economic market have complete and instantaneous knowledge of all market aspects that affect their transactions.

Expected Opportunity Loss

The potential loss in value for not choosing the best course of action in decision-making under uncertainty.

Perfect Information

An ideal state in decision-making processes where all parties have complete and accurate information.

Expected Payoff

The average amount one can expect to win or lose per bet or decision, calculated by weighing each possible outcome by its probability of occurring.