A. Learning curves describe the fact that the more experience people have with something, the more efficient they become in doing that task. Higher costs per unit early in production are part of the start-up costs. Usually new products and production processes experience a period of low productivity followed by increased productivity. However, the rate of productivity improvement declines over time until it reaches a level where it remains, until another change in production occurs.
B. Statistical sampling is used to calculate the condition of a population based on a sample from that population.
C. Linear programming is used to either maximize or minimize some quantity (called the objective function) in the presence of constraints, or restrictions, such as limited quantities of labor or materials.
D. Probability gives a means of measuring numerically how likely it is that an event will occur. It enables us to quantify and analyze uncertainties. Usage of probability technique can provide an estimate of what condition the tires of the fleet are in at any point in time and the expected value of replacing all tires at once versus replacing them as they wear out.