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The direct labor cost of making airplanes decreases with learning (learning curve). As a result, the cost of manufacturing a given airplane depends on the unit number (first, fifth, 10th, 50th, etc.). The following data shows the direct labor cost for selected production numbers.
Airplane # (X) 1 5 10 20 40 80 100 150 200
Labor Time (Y) 7300 6800 6400 5500 4800 4200 4000 3700 3500
a- Using Excel graphs, find linear, power, exponential, and polynomial 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. NOTE: No logarithmic model required.
b- If an airplane manufacturer charges $200 per hour for direct labor cost, find the total labor cost if a small airliner orders 6 airplanes (#125 to 130).
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