Reference no: EM13585365

1) A contractor has produced the first unit of a laser targeting device at a cost of $45K. Historically, their learning curve has ranged from 88%-92%. The contractor's manufacturing overhead of 175% is based on business that has already been booked for the coming year that will fully employ their facility and workforce. The buy quantity for the coming year has been set by the multiyear agreement. Which would be the best element to consider in a sensitivity analysis?

Learning curve slope

Overhead rate

Buy quantity

First unit cost

2. The man-hour estimate for test and evaluation was based on using expert opinion to come up with optimistic, pessimistic and most likely positions. This resulted in a triangular distribution with a minimum estimate of 425 hours, a most likely estimate of 500 hours, and an expected maximum of no more than 650 hours. Calculate the variance of this distribution.

4219

2188

92604

525