If It Took 1000 Hours to Produce the First Unit

question 53

Multiple Choice

If it took 1000 hours to produce the first unit of a product,and the learning curve is 70%,how long will it take to produce units 26 through 50?

• A)12,307 hours
• B)8,404 hours
• C)134 hours
• D)3,903 hours
• E)none of the above

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Definitions:

Costs Vary

An expression indicating that expenses can change based on factors such as production volume, time, and market conditions.

Level of Service

A measure of the quality of service provided, often used in the context of public transportation or customer service, indicating efficiency, responsiveness, and satisfaction.

Utilization Rate

This measures the efficiency with which capacity is used, often expressed as a percentage of total available capacity.

Exponential Distribution

A statistical distribution used to model time between events in a process that occurs continuously and independently at a constant average rate.