Chavez Incorporated manufactures bike parts for various bike manufacturers. One particular contract resulted in the following labor costs:
Cumulative Number of Average Labor Costs per Unit
Units Produced, X (in real dollars), Y
1................................................................................. $1,333
2................................................................................. 1,000
3................................................................................. 845
4.................................................................................. 750
5.................................................................................. 684
6.................................................................................. 634
7.................................................................................. 594
8.................................................................................. 562
a. Sketch the relation between X and Y.
b. If there is a learning phenomenon, estimate the constant percentage reduction in labor costs, that is, the percent cumulative learning curve.