Question: Question 2 (Power Function or Cost Learning Model) A company builds special vehicles for the military, according to a contract for the manufacturing and delivery
Question 2 (Power Function or Cost Learning Model) A company builds special vehicles for the military, according to a contract for the manufacturing and delivery of 50 units. The costs of the 10th and the 15th units were found to be $200,000 and $160,000 respectively. The department of defense expects that such cost reduction is the result of improvement due to "learning" A. use the above data to establish the Power Function Y = b[X} in, also known as the Learning Function Tu = K (N) 1 s., Where Tu: Is the unit cost, K: Is a constant, N: the unit number, and s: is the learning index. B. If the Department of Defense expects Learning Index value of, (-75), for this type of equipment, should they be satisfied with the company's performance ? C. estimate the difference between the company cost and the Cost Estimate as expected by the Department of Defense, for unit number 30
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