Question

Which of the following states that the cumulative average time per unit decreases by a constant percentage each time the cumulative quantity of units produced doubles?

1) Incremental unit-time learning curve model
2) Industrial analysis model
3) Cumulative average-time learning curve model
4) Multiple regression model

Answer 1

The cumulative average-time learning curve model states that the cumulative average time per unit decreases by a constant percentage each time the cumulative quantity of units produced doubles.

Step-by-step explanation:

The answer to your question is option 3) Cumulative average-time learning curve model.

The cumulative average-time learning curve model states that the cumulative average time per unit decreases by a constant percentage each time the cumulative quantity of units produced doubles. This model is based on the concept that as workers gain experience and familiarity with a task, they become more efficient, leading to reduced production time.

For example, if it takes 10 hours to produce the first unit, according to this model, it would then take 5 hours to produce the second unit, 2.5 hours for the fourth unit, and so on.