Learning Curve: Algebraic approach

mark057
mark057 Registered Posts: 354 Dedicated contributor πŸ¦‰
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

Comments

  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor πŸ§™β€β™‚οΈ
    How you get Β£120?

    You'd divide 20.83 by (230 to the power of -0.322)
  • mini_schnauzer
    mini_schnauzer Registered Posts: 347 Dedicated contributor πŸ¦‰
    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.
  • mark057
    mark057 Registered Posts: 354 Dedicated contributor πŸ¦‰
    $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?

    Mark
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor πŸ§™β€β™‚οΈ
    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 -0.322
  • mark057
    mark057 Registered Posts: 354 Dedicated contributor πŸ¦‰
    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.

    Mark
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor πŸ§™β€β™‚οΈ
    Needs to be -0.322
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor πŸ§™β€β™‚οΈ
    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)
  • mark057
    mark057 Registered Posts: 354 Dedicated contributor πŸ¦‰
    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.

    Mark
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor πŸ§™β€β™‚οΈ
    mark057 wrote: Β»
    Simple when you know how.

    No, just less hard! :D

    I studied with Kaplan classes, and one of the first thing they did was a calculator refresher.
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    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.com
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor πŸ§™β€β™‚οΈ
    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!
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