Exercise 2

a) Your company assigned you to guide a major programming project. One particular coding process involves several labor-hours, with a redundant work. In order to improve efficiency, you anticipated a total of 250,000 labor-hours to complete the first iteration of the coding and a learning curve rate of 80%. You are attempting to estimate the cost of the twentieth (steady state) iteration of this coding sequence. Based on this information and a $45 per hour labor rate, what would you expect to budget as the cost of the twentieth iteration? The fortieth iteration? (10 Points, LO2) b) Assume there are a total of 30 iterations of this activity required for the project. The project activity takes 1.5 hours at its steady state rate and the learning rate is 75%. Calculate the initial output time for the first unit produced, using the learning curve formula: (10 Points LO5) Yx = aXb where: Yx = the time required for the steady state, x, unit of output a = the time required for the initial unit of output X = the number of units to be produced to reach the steady state b = the slope of the learning curve, represented as: log decimal learning rate/log 2