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

Bounded intervals, Let a and b be fixed real numbers such that a ...

Let a and b be fixed real numbers such that a The open interval (a, b): We define an open interval (a, b) with end points a and b as a set of all r

Differential equation, Find the series solution of2x2y”+xy’+(x2-3)Y=0 about...

Find the series solution of2x2y”+xy’+(x2-3)Y=0 about regular singular pointuestion..

Difference between experiment and outcome, Difference Between Experiment an...

Difference Between Experiment and Outcome Experiment is an operation that produces outcomes which can be observed. Outcome/Event is the result of an experiment.

Fractions, how do i multiply and divide fractions?

how do i multiply and divide fractions?

Geometric , a part of a line with two end points.

a part of a line with two end points.

How much was invested at 12% if the total annual interest, Jackie invested ...

Jackie invested money in two different accounts, one of that earned 12% interest per year and another that earned 15% interest per year. The amount invested at 15% was 100 more tha

Example of the commutative property of addition, Tori was asked to provide ...

Tori was asked to provide an example of the commutative property of addition. Which of the subsequent choices would be correct? Using the simple interest formula Interest = pr

Student, Patio measures 24 meters square. Patio stone are 30 cm each side. ...

Patio measures 24 meters square. Patio stone are 30 cm each side. How many stones are required to cover the patio?

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