Learning Curve: Algebraic approach
mark057
Registered Posts: 354 Dedicated contributor 🦉
Hi there,
I've come across a calculation for the formula y = ax b
The learning curve is 80% which gives a learning rate of 0.322.
The answer says a = $120.00 which is the cost of making the first unit. x = 230 cumulative units and b = 0.322 the learning curve.
It says $120.00 x (230 0.322) = $20.83 culumlative average cost per unit.
Can someone explain how you get $120.00 from these figures using a calculator? How is the learning rate calculated against the 230 units?
Any help would be gratefully appreciated as ever.
Mark
I've come across a calculation for the formula y = ax b
The learning curve is 80% which gives a learning rate of 0.322.
The answer says a = $120.00 which is the cost of making the first unit. x = 230 cumulative units and b = 0.322 the learning curve.
It says $120.00 x (230 0.322) = $20.83 culumlative average cost per unit.
Can someone explain how you get $120.00 from these figures using a calculator? How is the learning rate calculated against the 230 units?
Any help would be gratefully appreciated as ever.
Mark
0
Comments

How you get £120?
You'd divide 20.83 by (230 to the power of 0.322)0 
Hi Mark057
What tution provider books are you using? They don't seem to be explaining it to you very well.
Also, I think the AAT students would prefer the ACCA F5 question to go into the new further studies section.0 
$120.00 was given to me in the question as the cost of producing the first unit.
I have no idea how to calculate 230 to the power of 0.322?
How do you work that out on a calculator?
Mark0 
Ah right, that makes sense now.
You can't do it on your big chunky calculator. You'll need a scientific one, it'll have a button that says xy or similar, (with the y being up and right of the x).
with x being the 230 and y being 0.3220 
Hi PGM
I have a scientific calculator with a yx button.
I've calculated 230 pressed the yx button and then 0.322 = 5.760714646.
I've tried mutiplying $120 by 5.760714646 and I'm not getting $20.85.
How would you calculate it?
I'm really confused.
Mark0 
Needs to be 0.3220

If for some reason you can't put the negative symbol in, you can do 1 divided by (230 to the power of 0.322)0

Hi PGM
I found it. You are a star, thanks so much.
Simple when you know how. I'm just really suprised the book didn't run through the calculation. Its been years since I did my GCSE Maths.
Mark0 
If you are preparing for the CIMA P2 exam, try to practice finding more than just [size=+1]y[/size]
Look to find:
the learning rate%
[size=+1]x[/size] and
[size=+1]a[/size]Sandy
sandy@sandyhood.com
www.sandyhood.com0 
mini_schnauzer wrote: »Also, I think the AAT students would prefer the ACCA F5 question to go into the new further studies section.
I was going to say, I don't remember ever having to do things like this at AAT!0
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