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 with the equation y =axb. In the equation, a and b are constants. Using a trend curve, we can determine the values of a and b that make the power curve best fit a scatter plot diagram. 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 power curve increases as x increases.
For 0<b<1, y increases as x increases, and the slope of the power curve decreases as x increases.