Question

Consider the data in table below which shows the time required to produce a particular item. Using that data, calculate the labor hours for Unit 1 in the learing curve associated with this product.

	Units	Labor Hrs
	3	170
	7	150
	13	137
	19	90
	30	65

Answer 1

x = Units; y = labor hours

Learning curve equation: y = a.x^b

or, Log(y) = Log(a) + b*Log(x)

Take, Log(x) = X; Log(y) = Y

We fit a regression line between X and Y as shown -

So, the regression line is Y = 2.4822 - 0.4046*X

or, Log(y) = 2.4822*Log(x) - 0.4046

So, Log(a) = 2.4822

i.e. a = labor hours for the first part = 10^(2.4822) = 304 labor hours