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Hi Sir
ACCA SEP 16
HELOT Q29
How the “The change in the learning rate will increase the current estimated cost which will increase the cost gap”?
Shouldn’t the cost be reduced as the learning curve increases I think the option should be D which says “The target cost will remain the same and the cost gap will decrease”
kindly explain me how its C not D thanks !The higher the learning rate then the more time it will take to produce and the more the cost.
(Think about it – if the learning rate was 100% then there would be no learning at all and the time would stay the same 🙂 )
I do explain this in my free lectures.
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