Today's Topic Applications of Differentiation: 1 1st Derivative Test

Today’s Topic
Applications of Differentiation
1 1st Derivative Test
Increasing and Decreasing Functions Critical Points
Md. Azad Uddin
Relative Maxima and Minima
2 2nd Derivative Test BSc
(Hon’s) & MS in Applied Statistics, University of Dhaka MA in Development Economics, Hiroshima University
Concavity Relative Maxima and Minima Email: azad.uddin@northsouth.edu

Inflection Points
Visiting Lecturer
3 Absolute/Global Maxima and Minima
School of Business and Economics (SBE)
4 Applications in
Business and Economics Dept. of Management, North South University
Maximization/Minimization
November 12, 2018
Elasticity
5 Optimization Using the Closed Interval Method
Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management,
Md. North Azad South Uddin University (NSU) November 12, 2018 Applications 1/58
of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M
Introduction: Applications of Differentiation

1st Derivative Test
1st Derivative Test


1st Derivative Test
1st Derivative Test Increasing and Decreasing Functions
Increasing and Decreasing Functions

1
If f /(x) > 0 for all x in an open interval I, then f is increasing over I.
2
If f /(x) < 0 for all x in an open interval I, then f is decreasing over I.
Increasing and Decreasing Functions

1st Derivative Test Increasing and Decreasing Functions
1st Derivative Test Critical Points
Critical Points
For determining increasing or decreasing behavior using a derivative, the interval I is an open interval;
that is, it does not include its endpoints. These values are examples of critical values. Critical Points
Definition (Critical Points) Let f be a function and c be a point in its domain. We call c a Critical point for
f if f /(c)=0or f /(c) is undefined.
Finding Critical Point(s)
1
Find f /(x)
2
Find value(s) of x, setting f /(x)=0

Also note that a continuous function can change from increasing to decreasing or from decreasing to
increasing only at a critical value.

Critical Points
Critical Points
Example Find the critical points of the function
1
f (x)=3x4 − 20x3 + 17

2
R(x) = x2-5x+4
x2+4
3
p(x)=(x2 − 3x)e-0.5x
1st Derivative Test Relative Maxima and Minima

North South University November 12, 2018 11/58
Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M

The First Derivative Test


Finding Relative Maximum and Minimum:


Example Find the relative extrema (relative maxima and minima) of the function f given by
f (x)=2x3 − x4
Solution First, determine the critical values. we find where f /(x) does not exist or where f /(x) = 0.
f
/
(x)=6x
2
− 4x
3
=0 =⇒ x = 0,
3 2


Second, We use these values to divide the x-axis into three intervals and determine the sign of the
derivative on each interval by choosing a test value in each interval and substituting.
Therefore, by the First-Derivative Test, f has no extremum at x = 0 (since f /(x) is increasing on both sides
of 0) and has a relative maximum at x = 3. Thus, Md. Azad Uddin f (NSU) (3
2
) = 27 16
is a relative maximum.
Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management, Md. North Azad South
Uddin University (NSU) November 12, 2018 Applications 17/58

Example Find the relative maxima and minima of the function
1
2nd Derivative Test

f (x) = x3 − 6x2 − 63x + 42
2
2 3
3
Md. Azad
Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of M g(x) = x(5 − x) h(x) =
4x-6 x2+4

More examples,

2nd 2nd Derivative Test
Derivative Test Concavity
Concavity
The “turning” behavior of a graph is called its concavity. The second derivative plays a pivotal role in
analyzing the concavity of a function’s graph.
Concavity
2nd Derivative Test Relative Maxima and Minima
2nd Derivative Test

2nd Derivative Test


2nd Derivative Test

2nd Derivative Test
Example Find the Relative Maxima and Minima of the function
f (x)=3x5 − 20x3
2nd Derivative Test

Thus, f (−2) = 64 is a relative maximum,and f (2) = −64 is a relative minimum. Since f /(−1) < 0 and f /(1)
< 0, we know that f is decreasing on both (-2, 0) and 1(0, 2). Thus, we know by the First- Derivative Test
that f has no relative extremum at (0, 0).

Example Find the Relative Maxima and Minima of the function
1
g(x)=3x4 − 20x3 + 17


2nd Derivative Test Inflection Points
Inflection Points
Inflection Points
Inflection Points
Inflection Points
Determine intervals of concavity and find the inflection points for the function
g(x)=3x4 − 20x3 + 17 (1)
Find g’ and g” Find where g”(x) is 0, x=0 or 10/3 make a sign chart for g” at 0 and 10/3
(−∞,0), second derivative is positive , concave up (0,10/3), second derivative is negative, concave down (10/3,∞),
second derivative is positive , concave up
inflection points (0,f (0)), and (10/3,f (10/3))

Concavity and Inflection Points

Determine intervals of concavity and find the inflection points for the function
1
Absolute/Global Maxima and Minima

h(x)=9xe-
x 3
2
g(x) = x(5 − x)

2 3

A relative minimum may or may not be an absolute minimum, meaning the smallest value of the function
over its entire domain. Similarly, a relative maximum may or may not be an absolute maximum, meaning
the greatest value of a function over its entire domain. An extremum may be at the highest or lowest point
for a function’s entire graph, in which case it is called an absolute extremum.
The function in the following graph has relative minima at interior points c
1
of the closed interval [a, b]. The relative minimum at c

1
is also the absolute minimum. On the

other hand, the relative maximum at c
2
is not the absolute maximum. The absolute maximum

occurs at the endpoint b.








Md. Md. Azad Uddin (NSU) Applications of Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of
Management, North Azad South Uddin University (NSU) November 12, 2018 Applications 41/58
Applications in Business and Economics

In recent years, economic decision making has become more and more mathematically oriented. Faced
with huge masses of statistical data, depending on hundreds or even thousands of different variables,
business analysts and economists have increasingly turned to mathematical Applications in Business and
Economics
methods to help them describe what is happening, predict the effects of various policy alternatives, and
choose reasonable courses of action from the myriad of possibilities. Among the mathematical methods
employed is calculus. Methods of finding extreme value have practical applications in many areas of life.
A businessperson wants to minimize costs and maximize profits. A traveler wants to minimize
transportation time. Fermat’s Principle in optics states that light follows the path that takes the least time.

Applications in Business and Economics Maximization/Minimization

Example An apartment complex has 250 apartments to rent. If they rent x apartments then their monthly
profit, in dollars, is given by,
P(x) = −8x

Example Suppose you own a snow board rental shop and have determined that the
2
+ 3200x − 80000
demand equation for your snow boards is
How many apartments should they rent in order to maximize their profit?
p = $20 − x/10
Solution
(At $20 per rental you wont sell any) and the cost equation is
All that we’re really being asked to do here is to maximize the profit subject to the constraint that x must
be in the range 0 ≤ x ≤ 250. First, we’ll need the derivative and the critical point(s) that fall in the range 0
≤ x ≤ 250. p/(x) = −16x + 3200 =⇒ 3200 − 16x =0 =⇒ x = 200
C =50+3x
($50 fixed costs and $3 per snow board rental). What is the marginal profit in terms of x? What price
should you charge to maximize profits? p(0) = −80000,p(200) = 240000,p(250) = 220000 So, it looks like
they will generate the most profit if they only rent out 200 of the Md. Azad apartments Uddin (NSU)
instead of all Applications 250 of of them.
Diff. Visiting LecturerSchool of Business and Economics (SBE)Dept. of Management, Md. North Azad South Uddin University
(NSU) November 12, 2018 Applications 45/58

Solution The revenue is R = px = (20 − x/10)(x) = 20x − x2/10 So that profit is P = R − C = (20x − x2/10)
− (50 + 3x) = 17x − x2/10 − 50 The marginal profit is dP/dx = 17 − x/5 To find the maximum profit we
set the marginal profit equal to zero and solve: 17 − x/5=0 =⇒ x = 85 Thus the price we should set is p =
20 − 85/10 = $11.5 per rental.

Applications Applications in Business and Economics Maximization/Minimization
in Business and Economics Maximization/Minimization
Elasticity
Applications in Business and Economics Elasticity
Elasticity
Elasticity is defined as
ε
d
Economic Applications
dq q
p dp p
q
Example what is the price elasticity of demand when p = 5 and demand is q = 100 − 5.p?
Profits π are a function of output sold given by the function π = 20.q − q2. Which value of q maximizes
profits? Set, π/ =0 =⇒ q = 10. Profits are maximized when marginal costs equal marginal benefits. ε
d
Md. Azad Uddin (NSU) Applications of Diff.
Visiting LecturerSchool of Business and Economics (SBE)Dept. of M =
=
dq dp
.
dq = =⇒ q dp
=
ε p
d
dq dp
.
p q
p 100-5p =⇒ ε
d
= −5 So when (p the = price 5) = increases −5 100-5.5

5
by = 1%, -25 75

the = −0.33.
demand decreases by approximately 0.33%.

Optimization Using the Closed Interval Method

The closed
interval method is a way to solve a problem within a specific Optimization Using the Closed Interval
Method
interval of a function. The solutions found by the closed interval method will be at the absolute maximum
or minimum points on the interval, which can either be at the endpoints or at critical points. Other ways of
solving optimization problems include using the first derivative test or the second derivative test. The
maximum value of A must occur either at that critical number or at an endpoint of the interval.

A farmer has 2400 ft of fencing and wants to fence off a rectangular field that borders a straight river. He
needs no fence along the river. What are the dimensions of the field that has the largest area?

So, the function that we wish to maximize is: A(x) = 2400x − 2x2;0 ≤ x ≤ 1200 The derivative is: A/(x) =
2400 − 4x So, to find the critical numbers, we solve: 2400 − 4x =0 =⇒ x = 600 The maximum value of A
must occur either at that critical number or at an endpoint of the interval. A(0) = 0;A(600) = 720,000; and
A(1200) = 0 So, the Closed Interval Method gives the maximum value as: A(600) = 720,000
Let x and y be the depth and width of the rectangle (in feet). So, A = xy. We wish to maximize the area A
of the rectangle. Also, 2x + y = 2400 From that equation, we have: y = 2400 − 2x This gives: A = x(2400
− 2x) = 2400x − 2x2 Note that x ≥ 0 and x ≤ 1200
Alternatively, we could have observed that A//(x) = −4 < 0 for all x. So, A is always concave downward
and the local maximum at x = 600 must be an absolute maximum. Thus, the rectangular field should be:
600 ft deep , 1200 ft wide
(otherwise A < 0).


Find the absolute Maximum and Minimum values of the function
f (x) = x
Thank
you 3
− 6x
2
− 36x + 41 (2)
on the interval [-4, 10]

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Concavity Relative Maxima and Minima Email: azad.uddin@northsouth.edu

Introduction: Applications of Differentiation

1st Derivative Test

Increasing and Decreasing Functions

Increasing and Decreasing Functions

Find value(s) of x, setting f /(x)=0

f (x)=3x4 − 20x3 + 17

Relative Maxima and Minima

Relative Maxima and Minima

The First Derivative Test

The First Derivative Test

The First Derivative Test

The First Derivative Test

The First Derivative Test

The First Derivative Test

2nd Derivative Test

The First Derivative Test

2nd Derivative Test

2nd Derivative Test

2nd Derivative Test

2nd Derivative Test

Relative Maxima and Minima

g(x)=3x4 − 20x3 + 17

Concavity and Inflection Points

Absolute/Global Maxima and Minima

g(x) = x(5 − x)

Absolute/Global Maxima and Minima

of the closed interval [a, b]. The relative minimum at c

is also the absolute minimum. On the

is not the absolute maximum. The absolute maximum

Absolute/Global Maxima and Minima

Absolute/Global Maxima and Minima

Absolute/Global Maxima and Minima

Absolute/Global Maxima and Minima

Absolute/Global Maxima and Minima

Absolute/Global Maxima and Minima

Applications in Business and Economics

Applications in Business and Economics

Applications in Business and Economics

Applications in Business and Economics

= −5 So when (p the = price 5) = increases −5 100-5.5

by = 1%, -25 75

Optimization Using the Closed Interval Method

Optimization Using the Closed Interval Method

Optimization Using the Closed Interval Method

Optimization Using the Closed Interval Method

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