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

What is universal set, A non-empty set or group of which all the sets under...

A non-empty set or group of which all the sets under concern are subsets is known as the universal set. In any part of application of set theory, all the sets under concern might l

Complex number, a ,b,c are complex numbers such that a/1-b=b/1-c=c-1-a=k.fi...

a ,b,c are complex numbers such that a/1-b=b/1-c=c-1-a=k.find the value of k

Geometry, #question.prove that the diagonals of a trapezium divide each oth...

#question.prove that the diagonals of a trapezium divide each other proportionally .

Proof of the derivative of a constant, Proof of the Derivative of a Constan...

Proof of the Derivative of a Constant : d(c)/dx = 0 It is very easy to prove by using the definition of the derivative therefore define, f(x) = c and the utilize the definiti

Core concepts, what are the core concept of marketing

what are the core concept of marketing

Equations, 20 equations that equal 36

20 equations that equal 36

Free - undamped vibrations, It is the simplest case which we can consider. ...

It is the simplest case which we can consider. Unforced or free vibrations sense that F(t) = 0 and undamped vibrations implies that g = 0. Under this case the differential equation

Determine randomly generated bit string, Assume E is the event that a rando...

Assume E is the event that a randomly generated bit string of length 4 starts with a 1 and F is the event that this bit string consists of an even number of 1's. Are E and F indepe

Markov chain, The Video Club Martin rents movies at "regular price" andat ...

The Video Club Martin rents movies at "regular price" andat "half price". Usually if the films are regularly priced one day, they will be at regular price the next day with probab

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