(Appendix 2) Tom’s Bicycle Shop hires college students at Christmas to assemble bikes for customers. Tom heard about learning curves and asked you to help him estimate improvement. The literature in the sporting goods industry indi¬ cates that bicycle assembly has an 80 percent learning curve. The college student Tom just hired took 5 hours to assemble the first bike, and Tom was visibly upset. Tom would like to know what he can expect will be the average time required for this worker to assemble 32 bicycles.

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