HBI inc. seeks to schedule manual labor for 18 new homes being constructed. Historical data leads HBI to apply a 92% learning curve rate to the manual labor portions of the project. If the first home requires 3,500 manual labor hours to build, estimate the time required to build:
a) The fifth house
b) The tenth house
c) All 18 houses.
What would the manual labor estimate be for all 18 of the HBI houses in the problem above if the learning curve rate is (1). 70% (2) 75% and (3) 80%?
Note: Use excels spreadsheet and report the spreadsheet in your answers.