Explore BrainMass
Share

Explore BrainMass

    Learning rate; total cost of building

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Company X collected the following cost data on the first 6 units of a new machine.

    Unit number Cost, $ millions
    1 300
    2 244
    3 211
    4 194
    5 179
    6 169

    Using Excel:
    (a) Estimate the learning rate.
    (b) Company X is bidding on a contract for 24 new machines. Explain how the estimated learning curve is helpful to Lockheed.
    (c) Estimate the total cost of building 24 additional machines.
    (d) Estimate the cost of building the 30th machine.

    I have started this problem, but I am a little lost. Please help. Thanks!!

    © BrainMass Inc. brainmass.com October 10, 2019, 2:03 am ad1c9bdddf
    https://brainmass.com/business/business-law/learning-rate-total-cost-of-building-360892

    Solution Preview

    See the attached file. Thanks

    Company X collected the following cost data on the first 6 units of a new machine. 

                                   Unit number Cost, $ millions
    x Yx Ln(x) Ln(Yx)
                             1 300 0.000 5.704
                             2 244 0.693 5.497
                             3 211 1.099 5.352
                             4 194 1.386 5.268
                             5 179 1.609 5.187
                             6 169 1.792 5.130

    Using Excel: 
       (a)  Estimate the learning rate. 
    The normal form of learning equation is Yx = Kx^n
    Where:
    x= unit number
    Yx=Cost of producing the xth unit
    K=Cost to procude the first unit
    n=log b/log 2 where b is learning ...

    Solution Summary

    This post shows how to calculate learning rate, total cost of building in different number of machines

    $2.19