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

Polynomials, In arithmetic, we deal with numbers. In contrast to this...

In arithmetic, we deal with numbers. In contrast to this, in algebra, we deal with symbols. These symbols are often represented by lower case alphabets. One of th

Pattern, 1,5,14,30,55 find the next three numbers and the rule

1,5,14,30,55 find the next three numbers and the rule

Calculate plurality based on the number of voters and candid, Consider an e...

Consider an election with 721 voters. A) If there are 5 candidates, at least x votes are needed to have a plurality of the votes. Find x. B) Suppose that at least 73 votes are n

Formulas of surface area - applications of integrals, Formulas of Surface A...

Formulas of Surface Area - Applications of integrals S = ∫ 2Πyds          rotation about x-axis S = ∫ 2Πxds          rotation about y-axis Where, ds = √ 1 + (1+ (dy /

Linear Equations of Parallel Lines, A line has the equation 2y=-3x+1. Find...

A line has the equation 2y=-3x+1. Find an equation of a line parallel to this line that has a y-intercept of -2.

The sum of -4 and a number is equal to -48 what is number, The sum of -4 an...

The sum of -4 and a number is equal to -48. What is the number? Let x = the number. Because sum is a key word for addition, the equation is -4 + x = -48. Add 4 to both sides o

Interval of validity, The interval of validity for an IVP along with initia...

The interval of validity for an IVP along with initial conditions: y(t 0 ) = y 0 or/and y (k) (t 0 ) = y k There is the largest possible interval on that the solution is va

How organize data by circle graphs, Q. How organize data by Circle Graphs? ...

Q. How organize data by Circle Graphs? Ans. Circle graphs, or pie charts, are another way of organizing data sets into an easy-to-read format. They make it very easy to c

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