Below is the ship production example:

Question above is what is being asked and using the example I have provided you can answer this question.

b. In the ship production example (Notes 2 discussion, pg. 4), estimate the time to complete the second ship; and the fifth ship. Explain possible factors that cause the time difference. Example: It took 125,000 hours to produce the first batch of several ships you expected to purchase for your shipping company. Ship 2 and 3 have been produced with a learning factor of 85%. 1. At $40 per hour, what should you expect to pay for the fourth unit? 2. How long will all four ships require to be produced? 3. The company believes that unusual circumstances in producing the first ship imply that the time estimate of 125,000 is not as valid a base as the time of the third ship. Ship number 3 was completed in 100,000 hours. Estimate the time to complete the first ship 1. log 0.85 T4 = T1(Nb) = 125,000 x 4 log 2 = 90,312.50 hours Therefore, Expected cost = 90,312.50 x 40 = $3,612,500 2. log 0.85 log 0.85 log 0.85 T4 = 125,000 X (1+2 log 2 + 3 log 2 +4 log 2 1+2 = 418, 176.85 hours log 0.85 3. 3 log 2 = 0.773 then we have T1 100,000 = 129, 366 hours 0.773