Answer (D) is correct . Learning curves reflect the increased rate at which people perform tasks as they gain experience. The time to perform a given task becomes progressively shorter during the early stages of production. The curve is expressed as a percentage reduction in time to complete a task for each doubling of cumulative production. A learning curve percentage of 80% is common. One model assumes that the cumulative average time per unit for all production is reduced by a constant percentage. Another assumes that the average time to produce the last unit is reduced by a constant percentage.
Answer (A) is incorrect because Regression analysis explains the correlation of a dependent variable with one or more independent variables. It is based on the linearity of costs, an assumption not required in learning curve analysis.
Answer (B) is incorrect because Multiple regression is used when many causal factors affect the outcome.
Answer (C) is incorrect because Time series analysis is a forecasting method that uses historical data to determine the future values of a variable. A moving average is a simple example. The variation within this data can be accounted for in various ways.
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