Calculus for Management Majors

mathematical thinking through calculus

Jungkai Alfred Chen

Outline

Lecture 7
Mar. 12, 2024

▶ Maximum and Minimum Values

▶ Local Maximum Values
▶ Maximum Values on a Closed Set
▶ Lagrange Multiplier
Local Extreme Values

Theorem
Suppose that f has continuous second order partial derivatives
2 .
and fx (a, b) = fy (a, b) = 0. Let D = fxx fyy − fxy
▶ If D > 0 and fxx > 0, then f has a local minimum at (a, b).
▶ If D > 0 and fxx < 0, then f has a local maximum at (a, b).
▶ If D < 0, then f has a saddle point at (a, b).
Local Extreme Values

Example
f = x 2 + 2y 2 , then D > 0 and fxx > 0.
f = −x 2 − 2y 2 , then D > 0 and fxx < 0.
f = x 2 − 2y 2 = (x + y)(x − y ), then D < 0.
Local Extreme Values

Given a quadratic form f = 21 ax 2 + bxy + 12 cy 2 .

f is positive definite if D = ac − b2 > 0 and fxx = a > 0.

In this case f (x, y ) > 0 for any (x, y) ̸= (0, 0).

Local Extreme Values

Given a quadratic form f = 21 ax 2 + bxy + 12 cy 2 .

f is negative definite if D = ac − b2 > 0 and fxx = a < 0.

In this case f (x, y ) < 0 for any (x, y) ̸= (0, 0).

Local Extreme Values

Sketch of the proof: If fx = fy = 0, then

1 1
f ≈ fxx (P0 )(x − a)2 + fxy (P0 )(x − a)(y − b + fyy (y − b)2 .
2 2
If the right hand side is positive definite, then f has local
minimum at P0 .
If the right hand side is negative definite, then f has local
maximum at P0 .
Local Extreme Values

Proof: If fx = fy = 0, then

1 1
f = fxx (P ′ )(x − a)2 + fxy (P ′ )(x − a)(y − b + fyy (P ′ )(y − b)2 ,
2 2
for some P ′ between P0 = (a, b) and P = (x, y) by Mean Value
Theorem. If the right hand side is positive definite at P0 , then it
is positive definite at P ′ by continuity and hence f has local
minimum at P0 .
If the right hand side is negative definite at P0 , then it is
negative definite at P ′ by continuity and hence f has local
maximum at P0 .
Extreme Values

Example
f (x, y ) = x + y − xy on the set of the closed triangular region
with vertices (0, 0), (2, 0), (0, 4).
Method of Least Squares

Given a data set {(x1 , y1 ), ..., (xn , yn )}. Find the ”best fitting line”
y = mx + b.
Lagrange Multiplier

To find the maximum and minimum values of f (x, y) subjects to

the constraint g(x, y ) = k.
1. Find all values of (x, y ) and λ such that ∇f = λ∇g and
g(x, y) = k.
2. Compare their values of f .
Lagrange Multiplier

Example
Find the extreme values of f (x, y) = x 2 + 2y 2 on the unit circle
x 2 + y 2 = 1.
Lagrange Multiplier

Example
Find the extreme values of f (x, y) = x 2 + 2y 2 on the unit disc
x 2 + y 2 ≤ 1.
Lagrange Multiplier

To find the maximum and minimum values of f (x, y, z) subjects

to the constraint g(x, y, z) = k.
1. Find all values of (x, y , z) and λ such that ∇f = λ∇g and
g(x, y, z) = k .
2. Compare the values of f .
Lagrange Multiplier

Example
Find the maximal volume of a rectangular box without a lid
made from 12m2 of cardboard.
Lagrange Multiplier

To find the maximum and minimum values of f (x, y, z) subjects

to the constraint g(x, y, z) = k and h(x, y, z) = c.
1. Find all values of (x, y , z) and λ, µ such that
∇f = λ∇g + µ∇h, g(x, y, z) = k and h(x, y , z) = c.
2. Compare their values of f .
Lagrange Multiplier

Example
Find the maximum value of f = x + 2y + 3z on the curve of the
intersection of x − y + z = 1 and cylinder x 2 + y 2 = 1.