Omega Technology is starting production of a new supercomputer for use in large research universities. They have just completed the first unit, which took 120 man-hours to produce. Based on their experience, they estimate their learning percentage to be 83 percent. How many man-hours should they expect the second unit to require to manufacture?

Answer: 99.6 man hour

Explanation:

Given the following;

Man hour required for first unit = 120

Learning rate = 83%

The expected man hour required for the second unit of production is expected to decrease as they must have mastered some technicalities from the first unit production which would make the second unit production faster, hence the 83% learning rate.

Man hour for second unit is given by;

83% * man hour for first unit

(83:100) * 120

0.83 * 120 = 99.6 man hour