E5 Data analysis techniques and the learning curve

A correlation coefficient of +0.95 shows:

• 1 A perfect negative relationship
• 2 A weak negative relationship
• 3 A strong positive linear relationship
• 4 No relationship

A regression forecast is most reliable when:

• 1 The correlation is strong and the forecast is within the range of the data
• 2 The forecast is far outside the data
• 3 The relationship has changed
• 4 There are only two points

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

• 1 The total time falls to 80%
• 2 The time of the last unit falls by 80%
• 3 Nothing
• 4 The cumulative average time per unit falls to 80% of its previous level

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

• 1 320 hours
• 2 64 hours
• 3 256 hours
• 4 400 hours

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?

• 1 45.4 hours
• 2 80 hours
• 3 64 hours
• 4 51.2 hours

What is the steady state in the learning curve?

• 1 The point of maximum learning
• 2 The break-even point
• 3 The first unit
• 4 The point at which the learning effect ends and the time per unit is constant

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

• 1 Time series
• 2 The learning curve
• 3 The high-low method
• 4 Regression

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

• 1 They need no data
• 2 They rely on past data that may not predict the future
• 3 They use future data
• 4 They can never be used