E5 Data analysis techniques and the learning curve

Written by Saad Rahman (ACCA)

ACCA · New at Expertise level · 8 questions

Name: ____________________   Date: ____________

1. A correlation coefficient of +0.95 shows:

   • A A perfect negative relationship
   • B A weak negative relationship
   • C A strong positive linear relationship
   • D No relationship

2. A regression forecast is most reliable when:

   • A The correlation is strong and the forecast is within the range of the data
   • B The forecast is far outside the data
   • C The relationship has changed
   • D There are only two points

3. In an 80 percent learning curve, what happens when cumulative output doubles?

   • A The total time falls to 80%
   • B The time of the last unit falls by 80%
   • C Nothing
   • D The cumulative average time per unit falls to 80% of its previous level

4. The first unit takes 100 hours and the learning rate is 80 percent. What is the total time for the first 4 units?

   • A 320 hours
   • B 64 hours
   • C 256 hours
   • D 400 hours

5. Using an 80 percent curve with a first unit of 100 hours, the total for 3 units is 210.6 hours and for 4 units is 256 hours. How long does the fourth unit take?

   • A 45.4 hours
   • B 80 hours
   • C 64 hours
   • D 51.2 hours

6. What is the steady state in the learning curve?

   • A The point of maximum learning
   • B The break-even point
   • C The first unit
   • D The point at which the learning effect ends and the time per unit is constant

7. Which method separates fixed and variable costs using the highest and lowest activity levels?

   • A Time series
   • B The learning curve
   • C The high-low method
   • D Regression

8. Which of these is a limitation of data analysis techniques for forecasting?

   • A They need no data
   • B They rely on past data that may not predict the future
   • C They use future data
   • D They can never be used