Ch$4$A$-6($Static$)$

Lazer Technologies Incorporated $($LTI$)$ has produced a total of $20$ high$-$power laser systems that could be used to destroy any

approaching enemy missiles or aircraft. The $20$ units have been produced, funded in part as private research within the research and

development arm of LTI, but the bulk of the funding came from a contract with the U$.$S$.$ Department of Defense $($DoD$).$

Testing of the laser units has shown that they are effective defense weapons, and through redesign to add portability and easier field

maintenance, the units could be truck$-$mounted.

DoD has asked LTI to submit a bid for $100$ units.

The $20$ units that LTI has built so far cost the following amounts and are listed in the order in which they were produced: Use Exhibit

$4$A$.5$ and Exhibit $4$A$.6.$

a$.$ Based on past experience, what is the learning rate?

Note: Do not round intermediate calculations. Round your answer to the nearest whole percent.

Learning rate

b$.$ What cost should LTI use in their bid for the total order of $100$ additional units, assuming that learning continues?

Cost for $100$ more units

c$.$ What is the cost expected to be for the last unit under the learning rate you estimated?

Expected cost for last unit