Optimization, Mathematics

Assignment Help:

Optimization is required in situations that frequently arise in finance and other areas. Organizations would like to maximize their profits or minimize their costs at a given level of output. An individual would like to maximize his utility when choosing investment alternatives. If we have a mathematical function, then we can find a solution to the optimization problem using calculus.

Of all the higher order derivatives, the second order derivative is of special interest in problems of optimization.

The first derivative of a function, f'x is the slope of the function f(x), or the rate of change in the value of f(x) per unit change in x. Similarly the second derivative, f''x is the slope of the function f'x or the rate of change in the value of f'x per unit change in x, which is the rate of change of the original function f(x).

The following figures and table show various combinations of signs of f'x and f''x and the implied slope of the graph of f(x).

781_optimization.png

  f'x

  f''x

f(x) is


positive

positive

increasing at an increasing rate

positive

negative

increasing at a decreasing rate

negative

positive

decreasing at an increasing rate

negative

negative

decreasing at a decreasing rate                                          


Related Discussions:- Optimization

Shares and dividends, suresh invested rs.1080 in shares of face value rs.50...

suresh invested rs.1080 in shares of face value rs.50 at rs.54.After receiving dividend on them at 8% he sold them at 52.In each of the transaction he paid 2 % brokerage.Hpw much d

Mount everest is 29, Mount Everest is 29,028 ft high. Mount Kilimanjaro is ...

Mount Everest is 29,028 ft high. Mount Kilimanjaro is 19,340 ft high. How much taller is Mount Everest? Subtract Mt. Kilimanjaro's height from Mt. Everest's height; 29,028 - 19

Multiplication and division, you want to share 34 pencils among 6 friends ....

you want to share 34 pencils among 6 friends .How many would each friend get?

Calculus, I need help with my calculus work

I need help with my calculus work

VAM, applications of VAM.

applications of VAM.

..Job, Eddie mkes $15.75 per hour. Estimate how much Eddie will make per ye...

Eddie mkes $15.75 per hour. Estimate how much Eddie will make per year if he works 40 hours per week and 50 weeks per year.

What is converse- inverse and contrapositive, What is Converse, Inverse, an...

What is Converse, Inverse, and Contrapositive In geometry, many declarations are written in conditional form "If ...., then....." For Example: "If two angles are right angles,

Calculate time interval, From top of a tower a stone is thrown up and it re...

From top of a tower a stone is thrown up and it reaches the ground in time t1. A second stone is thrown down with the same speed and it reaches the ground in t2. A third stone is r

Curve tracing, How we calculate region for curve tracing

How we calculate region for curve tracing

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd