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B CO is intending to produce a new product called the widget. Bco has so far made 2 widget and the first one has took 8hr to produce and the second took 7.5hours to produce.
What is the actual learning rate?
How to calculate this??? Pls explain sir.I explain exactly how to do this in my free lectures on learning curves. Please do not expect me to type out my lectures again here!!
The average time per unit when they produce 2 units is (8 + 7.5) / 2 = 7.75 hours.
Therefore using the doubling rule, the learning rate is 7.75/8 = 0.96875 (or 96.875%)
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