Question

Assuming an 80 percent learning rate, if the 4th unit takes 100 hours to produce, the 16th unit should take how long to produce?

Short answer

It will require 64 hours.

Step-by-step solution

Given values

Learning rate = 80%

Number of units = 4

Hours of production = 100

Calculation of the duration it will take to produce the 16th unit

Hours of production for nth unit = Tx(L)^n

= 100 x (0.8) ^2

= 100 x 0.64

= 64

That means 64 hours are required to produce the 16^th unit.