A Company Is Introducing a New Product

question 1

Multiple Choice

A company is introducing a new product. The first unit took 1,000 hours to complete, and the fourth unit took 750 hours to complete. What is the rate of learning for this product?

• A) less than 40 percent
• B) greater than or equal to 40 percent but less than 60 percent
• C) greater than or equal to 60 percent but less than 80 percent
• D) greater than 80 percent

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Definitions:

Uniform Density

A type of distribution in which all outcomes are equally likely within a specified range, characterized by a constant probability density function.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.

Poisson Approximation

A statistical method used to approximate the probabilities of rare events in a fixed interval of time or space, assuming events occur with a known constant rate independently of the time since the last event.

Probability

A value between 0 and 1 determining how likely an event is to occur, representing its probability.