Meaning of rate theory
An effort to include the rate of production in the Unit Learning Curve Model. First proposed by the RAND in 1974, the resultant modified learning curve equation is: Y=aX^b*R^c. R is the annualized rate of production, which will vary depending on the unit and the period of time over which it is built. c is the regression coefficient for R in the log-linear equation, just as b is the regression coefficient for X, and it is derived in a similar manner. In application, the rate term is rarely found to be statistically significant.
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