AMOUD UNIVERSITY

FACULTY OF COMPUTING & INFORMATICS

DEPARTMENT OF BUSINESS IN INFORMATION TECHNOLOGY

Management Mathematics

LECTURE NOTES

CHAPTER FIVE

BUSINESS CALCULUS

CLASS: Senior BBIT

SECOND SEMESTER

ACADEMIC YEAR: September, 2020 – July, 2021

LECTURER: Mr. Abdiqani M. Aden (Msc in Research & Analysis; Msc in Pure Mathematics)
 Introduction

 Calculus is the mathematical study of change. It studies the rate at which quantities change using
“derivative” of function. In economics and Business, Calculus is mostly used for optimization.
 The aim of optimization is to find the values of x for which y reaches a minimum or a
maximum.

 Examples of optimization problems:

o How much labor and capital should be used in order to minimize costs?
o How much of each good should we buy in order to maximize consumer utility?
o Which price should a monopolist company set in order to maximize profits?

Derivative

 The derivative of a function for value xo is slope of the tangent line to that function in xo.

 In the graph, the derivative of the function f(x) in xo is b.

 The derivative informs us about the rate of change of a function:
 The derivative is negative in x1, so the function is decreasing. The derivative is
positive in x2, so the function is increasing.
 If the derivative is large, then the function is increasing fast (large rate of change).

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  The derivative is zero in x3, so the function is not increasing or decreasing (horizontal
tangent line).

The derivative of Function

 The derivative ( ) of a function f(x) is a new function that relates each value of x to the
derivative of f(x) in x.
 The derivative function is denoted ( ) or or .

Differentiation Process
 The process of finding the derivative of a function symbolically rather than graph is known
as differentiation.
 In order to differentiate , all what you need to do is to bring the power down to the front
of x and subtract it by minus 1 this gives .

Example (1)
Differentiate the following:
a) y =
b) y = 3
c) y =
d) y = √

Rules for finding the derivative of a function

1. If f(x) = C , then ( ) = 0. i.e f(x) = 5 then ( ) = 0
2. If f(x) = x then ( ) = 1 i.e f(x) = 5x then ( ) = 5(1) = 5
3. If f(x) = xn then ( ) = nxn-1 i.e f(x) = x5 then ( ) = 5x4

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Example (2)
Find the derivative of each of the following function:
a) y = + 5x - 6
b) y = 6 -2 + 5x –
/ 3
c) y = 6√ + 6 -√
d) y =

Example (3)
Find the derivative of the following functions with-in the given point.
a) F(x) = 6x4 - 3x2 – 10 at point (2, 74)
b) F(x) = -3x3 – 2x2 – 5x – 4 at x = -3

Example (4)
Given the function f(x) = 2x5 + 3x2 – 10x – 7 , find
a) F(2)
b) F (x)
c) F (3)
d) F (x)
e) F (−2)

Example (5)
Find the gradient of the function f(x) = 3x3 – 6x2 + 5x – 9 at the p(0, -4).

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 Technique of Differentiation
Product rule
If h(x) = f(x) ∙ g(x) where f(x) and g(x) are two functions of x, then
h (x) = f (x) ∙ g(x) + g (x) ∙ f(x)

Example (1)
Find the derivative of each of the following:
a) F(x) = (2x – 8)( + 8)
b) F(x) = (3x2 + 4)(5x – 3)

Example (2)
Find f (x), If f(x) = (2x2 + 5x)(-3x2 – 6)

Example (3)
Extensive market research has determined that for the next five years, the price of a certain
mountain bike is predicted to vary according to p(t) = 300 – 30t + 7.5t2, where t is time in years
and p(t) is the price demand in dollars. The number of mountain bikes sold annually by Skinner’s
Bikes is expected to follow q(t) = 3000 + 90t – 15t2 , where q(t) is the number sold and t is the
time in years.
a) Determine R(t) and R′ (t). hint: R(t) is the revenue and equals price demand times quantity
b) Compute R′ (1) and interpret.
c) Compute R′ (4) and interpret.

Quotient rule
( )
If h(x) = ( )
where f(x) and g(x) are two functions of x, then
( )∙ ( ) ( )∙ ( )
h (x) =
[ ( )]

Example (3)
Using rules of differentiation, find the derivative of each:
a) F(x) =

b) F(x) =

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Example (4)
Researchers have determined through experimentation that the percent concentration of a certain
medication can be approximated by
p(t) = -4 (0.25, 20)

where t is the time in hours after administration the medication and p(t) is the percent
concentration. Evaluate p′ (1) and p′ (6) and interpret each.

Chain rule
If h(x) = [f(x)] then
h (x) = n[f(x)] ∙ [f (x)]

Example (5)
Determine in each of the following:
a) y = (3x − 8)
b) y = (3x − 10x)
c) y = √3 − 3

Example (6)
Even though the number of deaths due to heart disease has been declining over the past couple of
decades, heart disease is the leading cause death in the United States. About every 25 seconds, in
American will have a coronary event, and about once every minute an American will die from
one. The death rate caused by heart disease in the United States can be modeled by:
.
F(x) = 369.2(x + 1) 0≤ ≤ 17
Where x represents the number of years since 1990 and f(x) represents the death rate caused by
heart disease measured in deaths per 100,000 people. Evaluate f ′ (12) and interpret.

…… The End …….

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