A Contractor Builds Large Ships for the Department of Defence

question 63

Essay

A contractor builds large ships for the Department of Defence. 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% learning would be appropriate. In fact, the first ship cost $1.6 billion and the second $1.12 billion. What is the revised learning rate? What will be the total cost of the twelve ships? Is it higher or lower than the original estimates? If the defence department cuts the contract from 12 ships to 9, what happens to the average cost per ship?

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Definitions:

Exposure To Light

The condition of being subjected to light, which can affect various biological processes, including sleep cycles and mood.

Alpha Waves

Brainwaves detected by an EEG that represent a state of wakeful relaxation with closed eyes, typically with a frequency of 8-12 Hz.

Brain Waves

Patterns of electrical activity in the brain, measurable by electroencephalography (EEG), associated with different states of consciousness.

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.