The first unit of production takes 12 hours to produce and the learning rate is expected to be 80 percent.How long will it take to produce the eighth unit?
A)less than or equal to 7.0 hours
B)greater than 7.0 hours but less than or equal to 7.5 hours
C)greater than 7.5 but less than or equal to 8.0 hours
D)greater than 8.0 hours

Question

Quizplus · Accepted Answer

The learning rate is 80%, which means that each unit takes 80% of the time of the previous unit. So, the second unit takes 0.8 * 12 = 9.6 hours, the third unit takes 0.8 * 9.6 = 7.68 hours, and so on. The eighth unit takes 0.8^7 * 12 = 7.04 hours, which is less than or equal to 7.0 hours.

The First Unit of Production Takes 12 Hours to Produce