The first unit of a product took 50 hours to build, and the learning curve is 85%. How long will it take to make the 20th unit? (Use at least three decimals in the exponent if you use the formula approach.)
A) less than 25 hours
B) from 25 to 30 hours
C) from 30 to 35 hours
D) from 35 to 40 hours
E) more than 40 hours

Question

Quizplus · Accepted Answer

The learning curve is 85%, which means that each time the number of units doubles, the time taken to produce a unit decreases by 15%. So, the time taken to produce the 20th unit will be 50 * (0.85)^10 = 24.96 hours, which is less than 25 hours.

The First Unit of a Product Took 50 Hours to Build