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

Numeric patterns, Kelli calls her grandmother every month Kelli also calls ...

Kelli calls her grandmother every month Kelli also calls her cousin.If Kelli calls her cousin in January, how many calls will Kelli have made to her grandmother and her cousin by t

Immediate predecessor of mahavira, The twenty-third Jaina teacher, Parsva, ...

The twenty-third Jaina teacher, Parsva, the immediate predecessor of Mahavira enjoined on his disciples four great vows. To these Mahavira addes which of the followings as the fift

Coefficient of determination, Coefficient of Determination It refers t...

Coefficient of Determination It refers to the ratio of the explained variation to the total variation and is utilized to measure the strength of the linear relationship. The s

Hypothesis testing, Hypothesis Testing Definition of Hypothesis Testing...

Hypothesis Testing Definition of Hypothesis Testing - A hypothesis is a claim or an opinion about an issue or item.  Hence it has to be tested statistically in order to esta

Calculate the value of expected value, The owner of TMH Hospital wants to o...

The owner of TMH Hospital wants to open a new facility in a certain area. He usually builds 25-, 50-, or 100-bed facilities, depending on whether anticipated demand is low, medium

Initial value problems, Write a Matlab function MyIVP that solves an initia...

Write a Matlab function MyIVP that solves an initial-value problem (IVP) for a system of ordinary differential equations (ODEs) of the form x ?(t) = f (t, x(t)), where f : R × Rn ?

Parallelograns, Find x and y in each paarallelogram.

Find x and y in each paarallelogram.

Integers, i do not understand the rules for adding and subtracting integers...

i do not understand the rules for adding and subtracting integers, nor do i understand how to multiply and divide

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