A Contractor Builds Large Ships for the Department of Defense

question 101

Essay

A contractor builds large ships for the Department of Defense.A recent contract called for 12 amphibious landing platforms.It was originally estimated that the first of these would cost $1 billion and that 80 percent learning would be appropriate.In fact,the first ship cost $1.6 billion and the second $1.12 billion.What is the revised learning curve? What will be the total cost of the twelve ships? Is it higher or lower than the original estimate? If the defense department cuts the contract from 12 ships to 9,what happens to the average cost per ship?

---

Definitions:

Excitation

The process or state of being energized or stimulated to action or to increased activity.

Inhibition

The process of suppressing or restraining a behavioral or biological response.

Stimulants

Substances that increase activity in the brain and body, often enhancing alertness, attention, and energy.

Mirror Neurons

Neurons that fire both when an individual acts and when the individual observes the same action performed by another, contributing to empathy and understanding.