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The direct labor cost of making airplanes decreases with repetition (learning curve). As a result, the cost of manufacturing of airplanes depend on the unit production number (first, fifth, 10th, 50th, etc.). The following data shows the direct labor cost for selected production numbers.
Airplane # (X) Labor Time(Y)
1 7300 4 6500 12 5400 32 5000 64 4500 130 4200 200 4100 300 3500 400 3500 500 3000 600 2800
a- Using Excel graphs, find linear, power, exponential, and logarithmic fits for this dataset. Make sure to include equations and R2 for each fit. Insert all graphs here and select the best model based on R2.
b- If an airplane manufacturer charges $200 per hour for direct labor cost, find the total labor cost if a small airliner orders 10 airplanes (#700 to 709).
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