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

Setup the mass balance equation - linear system method, Two tanks initially...

Two tanks initially contain 100 liter liquid each. Their initial concentration are listed in the Figure below. At time zero, the input and output valves are opened simultaneously w

Generate a 30-ounce solution which was 28% acid, A chemist mixed a solution...

A chemist mixed a solution which was 34% acid with another solution that was 18% acid to generate a 30-ounce solution which was 28% acid. How much of the 34% acid solution did he u

Find out the greatest common factor, Find out the Greatest Common Factor? ...

Find out the Greatest Common Factor? The largest number that is a common factor of two numbers (that is, both numbers share the same factor) is called the greatest common facto

Help, draw a right angle isosceles triangle with 9 triangles in it

draw a right angle isosceles triangle with 9 triangles in it

Volumes of solids of revolution -method of cylinders, Volumes of Solids of ...

Volumes of Solids of Revolution / Method of Cylinders In the previous section we started looking at determine volumes of solids of revolution.  In this section we took cross se

Calcilate the height of the cone of which the bucket , A bucket of height 8...

A bucket of height 8 cm and made up of copper sheet is in the form of frustum of right circular cone with radii of its lower and upper ends as 3 cm and 9 cm respectively. Calculate

Prove - digraph of a partial order has no cycle more than 1, Prove that the...

Prove that the Digraph of a partial order has no cycle of length greater than 1. Assume that there exists a cycle of length n ≥ 2 in the digraph of a partial order ≤ on a set A

Rules of game theory, Rules Of Game Theory i.   The number of competito...

Rules Of Game Theory i.   The number of competitors is finite ii.   There is conflict of interests among the participants iii.  Each of these participants has available t

Factors, write down all the factors of 36

write down all the factors of 36

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