Microsoft Excel 2016 Data Analysis and Business Modeling

Chapter 55. The power curve

Question answered in this chapter:

As my company produces more of a product, it learns how to make the product more efficiently. Can I model the relationship between units produced and the time needed to produce a unit?

A power curve is calculated by means of the equation y =ax^b. In the equation, a and b are constants. Using a trend curve, you can determine the values of a and b that make the power curve best fit a scatter chart. In most situations, a is greater than 0. When this is the case, the slope of the power curve depends on the value of b, as follows:

For b>1, y increases as x increases, and the slope of the ...