It Took 60 Hours to Make the First Unit of a Product

question 22

Multiple Choice

It took 60 hours to make the first unit of a product. After the second and third units were made, the learning curve was estimated to be 80%. At $10 per hour, estimate the labor bill for the fourth unit. (Use at least three decimals in the exponent if you use the logarithmic approach.)

• A) $400 or less
• B) from $400 to $420
• C) from $420 to $440
• D) from $1800 to $2000
• E) over $2000

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Definitions:

Median

The middle value in a data set when it is ordered from smallest to largest, or the average of the two middle values when the data set has an even number of values.

Set of Data

A collection of data points or values gathered for the purpose of analysis.

Mode Age

The most frequently occurring age within a data set.

Frequency Distribution

A summary of data showing the number or frequency of observations in each category or interval of a variable.