QMB FL. Chap 01.

CMA: Quantitative Methods For Business
Lecturer Name: Mr.Ananth
Subject No : FL 4
Contents
No QUANTITATIVE METHODS FOR BUSINESS
1 Basic mathematics for business
2 Frequency distributions and presentation of data
3 Probability and sampling theory
4 Statistical inference
5 Relationship techniques
6 Introduction to financial mathematics
Appendix a
Chapter 01.
Basic mathematics for business
• Set of numbers, laws of algebra, and their applications such as

Simplifying and factoring.
• Properties of fractions and basic laws of exponents and radicals.
• Graphical representation of the linear and quadratic functions.
• Ability to resolve problems of linear inequalities.
• Ability to resolve problems of logarithmic and exponential functions.
• Concept of the derivative and demonstrate basic rules for
differentiation.
• Behavior of a function using the first derivative.
• Theories of indefinite integration.
Quantitative Methods For Business : Chapter 01
Introduction
Classification of numbers is very important for identifying the solutions in various kinds of
applications of mathematics in various fields including business and economics.
Therefore, in this chapter we will provide a basic idea about the classification of numbers
and some of the properties of their operations.
The set of Natural Numbers denoted by 𝑁 is the set of counting numbers.
The set of Natural Numbers is also called positive integers.

𝑁 = {1, 2, 3 … }
The set of natural numbers and zero is called the set of Whole Numbers.
𝑊 = {0,1, 2, 3 … }
The natural numbers together with 0 and negative values, -1, -2, -3,… form the set of
integers denoted by 𝑍.
𝑍 = {… , −3, −2, −1, 0, 1, 3, … }
The set of rational numbers consists of numbers such as 1/3,7/5, which can be written as a
ratio (quotient) of two integers.
That is, a rational number is one that can be written as /𝑞 , where 𝑝 and 𝑞 are integers
and 𝑞 ≠ 0. Thus, the set of rational numbers can be represented as,
𝑄 = {𝑥|𝑥 = 𝑝 , 𝑝, 𝑞 ∈ 𝑍 𝑎𝑛𝑑 𝑞 ≠ 0}
q
All rational numbers can be represented by terminating decimals such as 3/2 = 1.5 or by
non-terminating repeating decimals such as 4/11 = 0.363636… Numbers represented by
non-terminating and non-repeating decimals are called the irrational numbers.
An irrational number cannot be written as an integer divided by integer.

Examples
1) 𝜋 = the ratio of the circumference of a circle to its diameter. 𝜋 = 3.14159265 …
2) √2 = 1.4142 …
3) √3 = 1.73205 …
The union of the set of rational numbers and irrational numbers will form the set of
real numbers denoted by 𝑅.
-3
2 0.2 2
-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9
Laws of Algebra
Let 𝑎, 𝑏, 𝑐arebe any real numbers. Then the following properties are called laws of algebra.
• Additive property of closure : 𝑎 + 𝑏 is a unique real number.

• Multiplicative property of closure : 𝑎𝑏 is a unique real number.
• Commutative law of addition : 𝑎 + 𝑏 = 𝑏 + 𝑎.
• Commutative law of multiplication : 𝑎𝑏 = 𝑏𝑎.
• Associative law of addition : (𝑎 + 𝑏) + 𝑐 = 𝑎 + (𝑏 + 𝑐).
• Associative law of multiplication : (𝑎𝑏) 𝑐 = 𝑎 (𝑏𝑐).
• Additive identity:
There exists a unique real number 0 such that 𝑎 + 0 = 0 + 𝑎 = 𝑎.
• Multiplicative identity:
There exists a unique real number 1 such that a. 1 = 1. 𝑎 = 𝑎.
• Additive inverse:
For each real number 𝑎, there is a unique real number − 𝑎 such that 𝑎 + (− 𝑎) = (− 𝑎) + 𝑎 = 0.
• Multiplicative inverse:
For each real number 𝑎, there is a unique real number 𝑎−1 such that ( 𝑎−1) 𝑎 = 1.
• Distributive law: 𝑎 (𝑏 + 𝑐) = 𝑎𝑏 + 𝑎𝑐.

Exponents
If 𝑟 and 𝑠 are real numbers, an expression of the 𝑟𝑠 is an exponent expression with base 𝑟 and
exponent 𝑠.
The following definition shows how to interpret the expression 𝑟𝑠 when 𝑠 is an integer.
Let 𝑟 be a real number, and let 𝑛 be a natural number. Then;
i. 𝑟𝑛 = 𝑟. 𝑟. 𝑟 …. (up to 𝑛 terms)
ii. If 𝑟 ≠ 0, 𝑟0 = 1
iii. If 𝑟 ≠ 0, 𝑟−𝑛 =1
𝑟𝑛
Examples
Rules of Exponents
Let 𝑟, 𝑠, 𝑎 and 𝑏 are real numbers

Examples
The rules of exponents have many uses in the simplifications of algebraic expressions.
Examples
Linear Equations
An equation which can be written in the form 𝑎𝑥 + 𝑏 = 𝑐, where 𝑎, 𝑏 and 𝑐 are real numbers
and the letter 𝑥 denotes the variable of the linear equation.
Examples
1) 3𝑥 − 9 = 12 2) 2𝑥 + 3 = 5𝑥 − 4
3𝑥 = 12 + 9 2𝑥 − 5𝑥 = −4 − 3
3𝑥 = 21 −3𝑥 = −7
𝑥=7 𝑥 = 7/3
Simultaneous Linear Equations
When two or more equations are satisfied by the same values of the unknowns, they are
called simultaneous equations.
We can solve two simultaneous linear equations by the method of elimination and the
method of substitution.
Examples
01.Solve by elimination.
3𝑥 + 7𝑦 = 27 --(1) 5𝑥 + 2𝑦 = 16 --(2)
To eliminate 𝑥 we multiply (1) by 5 and (2) by 3, so as to make the coefficients of 𝑥 in

both equations equal.
(1)x5 15𝑥 + 35𝑦 = 135 --(3)

(2)x3 15𝑥 + 6𝑦 = 48 --(4)
Subtracting (4) from (3), we have

29𝑦 = 87
∴𝑦=3
To find 𝑥, substitute this value of 𝑦 in either of the given equations.
Thus, from
(1). 3𝑥 + 21 = 27
𝑥 = 2.
Therefore, the complete solution is 𝑥 = 2, 𝑦 = 3.
2) Solve by substitution.
Therefore, the complete solution is 𝑥 = 3, 𝑦 = 1.

Linear Inequalities
A linear inequality in one variable is an inequality that can be written as:
𝑎𝑥 + 𝑏 < 𝑐, 𝑎𝑥 + 𝑏 ≤ 𝑐, 𝑎𝑥 + 𝑏 > 𝑐, 𝑎𝑥 + 𝑏 ≥ 𝑐 where 𝑎, 𝑏, and 𝑐 are real numbers

and 𝑎 ≠ 0.
Important rules of Inequalities

For any real number 𝑎, 𝑏,and 𝑐:
• If 𝑎 < 𝑏 and 𝑐 > 0, then 𝑎𝑐 < 𝑏𝑐 and 𝑎/𝑐 < 𝑏/𝑐.
• If 𝑎 < 𝑏 and 𝑐 < 0, then 𝑎𝑐 > 𝑏𝑐 and 𝑎/𝑐 > 𝑏/𝑐.
Examples
1) 2𝑥 + 3 < 5 2) 5 ≥ 7𝑥 − 9
2𝑥 < 5 − 3 −7𝑥 ≥ −9 − 5
𝑥<1 𝑥 ≤ −14/−7
𝑥≤2
Quadratic Equations
A quadratic equation is an equation of the form of 𝑎𝑥2 + 𝑏𝑥 + 𝑐 = 0, where 𝑎, 𝑏 and 𝑐
are the real numbers.
Quadratic equations can often be solved by factoring the quadratic polynomial and
setting each factor equal to zero.
Not all quadratic equations have real number solutions, and even those that do have are
often difficult to solve by factoring.
It is possible to tell whether or not a quadratic equation has real number of solutions, and
to find them when they exist, by means of the quadratic formula.
Quadratic Formula
The solutions of the quadratic equation 𝑎𝑥2 + 𝑏𝑥 + 𝑐 = 0 are given by the quadratic formula
The 𝑏2 − 4𝑎𝑐 is called the discriminant of the quadratic equation.
• If 𝑏2 − 4𝑎𝑐 > 0, the equation has two distinct real number solutions.
• If 𝑏2 − 4𝑎𝑐 = 0, the equation has one real number solution.
• If 𝑏2 − 4𝑎𝑐 < 0, the equation has no real number solutions.
Examples
Graphing Linear Functions
A function having defining equation of the form 𝑦 = 𝑚𝑥 + 𝑏, where 𝑚 and 𝑏 are real
numbers, is called a linear function.
The graph of a linear function is a straight line.
Since two points determine a straight line, we need only to find two points that lie on the
line.
Examples
1) Draw the graph of the equation: 𝑦 = 2𝑥 + 1
If 𝑥 = 0, 𝑦 = 2(0) + 1 = 1
If 𝑥 = 2, 𝑦 = 2(2) + 1 = 5
The graph of 𝑦 = 2𝑥 + 1 is therefore the line which passes through points (0,1) and (2,5).
2) Draw the graph of the equation: 4𝑥 + 3𝑦 = 12
If 𝑥 = 0, 𝑦 = 4
If 𝑦 = 0, 𝑥 = 0
The graph of 4𝑥 + 3𝑦 = 12 is the line which passes through the points (0, 4) and (3, 0).
If the graph of a function intersects the 𝑦 - axis in the point (0, 𝑏), we say that 𝑏 is the 𝒚 -
intercept, if the graph intersects the 𝑥 - axis in the point (𝑎, 0), we say that a is the 𝒙 -
intercept.
If the equation of a straight line is 𝑦 = 𝑚𝑥 + 𝑏, we say that 𝑚 is the slope of the line.
Example
Find the slope and intercepts of the line −5𝑥 + 2𝑦 = 10.
−5𝑥 + 2𝑦 = 10
Convert the given equation to 𝑦 = 𝑚𝑥 + 𝑐 form. Then we have,
If 𝑥 = 0, 𝑦 = 5 ∴ 𝑦 −intercept = 5.
If 𝑦 = 0, 𝑥 = −2 ∴ 𝑥 −intercept = -2.
Note that two lines are parallel if they have the same slope.
Graphing a Quadratic Functions
A quadratic function has a defining equation of the
form𝑦 = 𝑎𝑥2 + 𝑏𝑥 + 𝑐, where 𝑎, 𝑏 and 𝑐 are real
numbers and the graph of a quadratic function is a
parabola.
The parabola has a single vertex, that is, a lowest

or highest point of the parabola.
Each parabola is symmetric with respect to a vertical

line through its vertex.
The graph of the quadraticf unction 𝑦 = 𝑎𝑥2 + 𝑏𝑥 + 𝑐,
I. is concave up if 𝑎 > 0 and concave down if 𝑎 < 0
Examples
Figure
Exponential and Logarithmic Functions
Exponential Function with Base 𝒃

Let 𝑏 be any positive real number except 1. A function whose defining equation is of the
form 𝑦 = 𝑐𝑏𝑟𝑥, where 𝑐 and 𝑟 are real numbers with 𝑐 ≠ 0 and 𝑟 ≠ 0 is called an exponential
function with base 𝑏.
Figure
The important properties of the exponential
function 𝑦 = 2𝑥 are
1. 𝑦 is positive for all real numbers 𝑥.
2. As 𝑥 increases, 𝑦 increases greater and at a

greater rate.
3. As 𝑥 decreases, 𝑦 decreases getting closer and

closer to 0.
4. The 𝑦 − 𝑖𝑛𝑡𝑒𝑟𝑐𝑒𝑝𝑡 is the point (0,1).

Figure
Figure
Exponential Growth and Decline
Suppose a company's sales were Rs. 100,000 in 2000 and have been doubling every 5 years.
This is a situation of exponential growth. If the sales have been becoming one-half every 5
years, the situation is an exponential decline.
Exponential growth functions are of the form 𝑦 = 𝑐𝑒𝑟𝑥 and exponential decline functions are of
the form 𝑦 = 𝑐𝑒−𝑟𝑥 where 𝑐 > 0 and 𝑟 > 0.
Examples.
Logarithms
Note:
The logarithm to the base 10 is called the common logarithm and is written 𝑙𝑜𝑔.
The logarithm to the base 𝑒 is called the natural logarithm and is written 𝑙𝑛.
Common and natural logarithms can be evaluated using a calculator or a table.

For example, log 2 = 0.3010 ln 2 = 0.6391
Note the following important properties of the graph 𝑦 = log2 𝑥.
1. 𝑥 > 0 for all 𝑦

2. 𝑦 < 0 for 0 < 𝑥 < 1
3. 𝑦 > 0 for 𝑥 > 1
4. 𝑦 = 0 when 𝑥 = 1
5. As 𝑥 increases, 𝑦 increases, but at slower rate.
Derivative of a Function
The concept of the derivative is the basis of calculus.
Differentiation is a method used to find the slope of a function at any point.
Although this is a useful tool in itself, it also forms the basis for some very powerful
techniques for solving optimization problems.
The process of finding the derivative is called differentiation.
To denote the derivative of 𝑦 = 𝑓(𝑥)at 𝑥, followings can be used.

Basic Rules for Differentiation
In this section, we shall look at some of the most important rules of differentiation.
These rules are involved in completely mechanical and efficient procedures for differentiation.
Rule 1 – The Constant Rule

If 𝑓(𝑥) = 𝐶, where 𝐶 is a constant, then 𝑓′(𝑥) = 0
Example
𝑓(𝑥) = 5 𝑓′(𝑥) = 0
Rule 2 – The Power Rule

If 𝑓(𝑥) = 𝑥𝑛, where 𝑛 is any real number then 𝑓′(𝑥) = 𝑛𝑥 𝑛−1.
Example
𝑓(𝑥) = 𝑥5 𝑓′(𝑥) = 5𝑥4

Rule 3-The constant –Multiple Rule

If 𝑔(𝑥) = 𝑐 ∙ 𝑓(𝑥) and 𝑓′(𝑥) exists, then 𝑔′(𝑥) = 𝑐 ∙ 𝑓′(𝑥).
Example
𝑓(𝑥) = 5𝑥4 𝑓′(𝑥) = 5 ∙ 4𝑥3 = 20𝑥3
Rule 4 –The Summation Rule

If 𝑓(𝑥) = 𝑔(𝑥) ± ℎ(𝑥) and if 𝑔′(𝑥) and ℎ′(𝑥) exist, then 𝑓′(𝑥) = 𝑔′(𝑥) ± ℎ′(𝑥).
Rule 4 can be extended to the derivative of any finite number of sums

and differences of functions.
The Sign of the Derivative and the Nature of a Function
To analyze the behaviour of a function, we must be able to draw the graph of that function
accurately enough to show, where the function is increasing and where it is decreasing.
In this section, we discuss the use of the first derivative of a function to determine this.
If 𝑓′(𝑥) > 0 for all 𝑥 in an interval (𝑐, 𝑑), then 𝑓(𝑥) is increasing over the interval.
If 𝑓′(𝑥) < 0for all 𝑥 in an interval (𝑐, 𝑑), then 𝑓(𝑥) is decreasing over the interval.
Relative Maximum, Relative Minimum, and Inflexion Points of a
Function
Let 𝑓(𝑥) be a function. The point [𝑎, 𝑓(𝑎)] is a relative maximum point for 𝑓(𝑥) if 𝑓(𝑥) ≤ 𝑓(𝑎)
for all values of 𝑥 near either side of 𝑎.
The point (𝑏, 𝑓(𝑏)) is a relative minimum point for 𝑓(𝑥) if 𝑓(𝑥) ≥ 𝑓(𝑏) for all values of 𝑥
near 𝑏 either side of 𝑏.
The function whose graph is shown in the following figure has relative maxima at the
points (4, 8) and (9, 7) relative minima at the points (3, 2) and (7, 4).
The point (5,6) is known as a point of inflexion.
The relative maximum or relative minimum points of a function together are also called
relative extreme or turning points. If the function 𝑓(𝑥) has a relative extreme at = 𝑎 ,
then 𝑓′(𝑎) = 0 or 𝑓′(𝑥) does not exist at 𝑥 = 𝑎 .
All the values of 𝑥 for which 𝑓′(𝑎) = 0 and also all the values of 𝑥 for which 𝑓′( 𝑥)is not
defined, are called critical values of the function 𝑓(𝑥).
If 𝑎 is a critical value [𝑎, 𝑓(𝑎)]is called a critical point.

To find the relative maxima, relative minima and inflexion points of a function 𝑓( 𝑥), two
commonly used tests: First Derivative Test and Second Derivative test are as follows.
The First Derivative Test

1. Find the critical values of 𝑓(𝑥).
2. Divide the domain of the function into intervals using critical values.
3. Examine the sign of 𝑓′(𝑥) on each of the intervals obtained in step 2.
4. As 𝑥 increases through the critical value,

• If 𝑓′(𝑥) changes sign from (+) to (-), then the critical point is a relative maxima
• If 𝑓′(𝑥) changes sign from (-) to (+), then the critical point is a relative minima
• If 𝑓′(𝑥) does not change sign, then critical point is an inflexion point.
Successive Differentiation
Since the derivative of a function is itself a function, it too may be differentiated. When this
is done, the result may also be differentiated.
Continuing in this way, we obtain higher-order derivatives. If 𝑦 = 𝑓(𝑥) then 𝑓′( 𝑥) is called the
first order derivative of 𝑓(𝑥) with respect to 𝑥.
The derivatives of 𝑓′(𝑥) denoted by 𝑓′′(𝑥), is called the second-order derivative of 𝑓( 𝑥) with
respect to 𝑥 etc.
If 𝑦 = 𝑓(𝑥)
The Second Derivative Test
Suppose 𝑓′(𝑎) = 0
If 𝑓′′(𝑎) < 0 then 𝑓(𝑥) has a relative maximum at 𝑥 = 𝑎
If 𝑓′′(𝑎) > 0 then 𝑓(𝑥) has a relative maximum at 𝑥 = 𝑎
If 𝑓′′(𝑎) = 0 , the test gives no information, that is (𝑎, 𝑓(𝑎)) may be a relative minimum point, a
relative maximum point or an inflexion point (Use the first derivative test).
Applications of Differentiation
Marginal Revenue and Total Revenue

What differentiation does is, it looks at the effect of an infinitely small change in the
independent variable 𝑥 on the dependent variable 𝑦 in a function 𝑦 = 𝑓( 𝑥).
In Economics, marginal revenue (MR) is sometimes defined as the increase in total

revenue (TR) received from sales caused by an increase in output by 𝑞 = 1 unit.
This is not a precise definition though.
It only gives an approximate value for marginal revenue and it will vary if the units, that
output is measured in, are changed.
A more precise definition of marginal revenue is that it is the rate of change of total
revenue relative to increases in output.
We know that the slope of a function can be found by differentiation and so it must be the
case that
Marginal Cost and Total Cost
Marginal cost (MC)is the rate of change of the total
cost (TC) function.
In fact, in nearly all situations where one is dealing

with the concept of a marginal increase, the
marginal function is equal to the rate of change of
the original function, i.e. to derive the marginal
function one just differentiates the original
function.
Profit Maximization
We are now ready to see how calculus can help a firm to find the quantity that maximizes
profit.
At this stage, we shall just use the MC = MR rule for profit maximization.
Integration
Integral calculus involves the process of finding the function itself when its derivative is
known.
This is the inverse process to finding the derivative of a function.
The process of finding an integral of a function is called integration.
There are two kinds of integration, indefinite and definite.

Indefinite Integration
If 𝐹(𝑥) is an integral with respect to 𝑥 of the function 𝑓(𝑥), the relationship between 𝐹( 𝑥)
and 𝑓(𝑥) is expressed as follows:
Rules of Integration
Reinforcement Problems
Multiple Choice Questions with Answers
Summary
Numbers represented by non-terminating and non-repeating decimals are called the
Irrational numbers.
The union of the set of rational numbers and irrational numbers will form the set of real
numbers denoted by “ ”.
If 𝑟 and 𝑠 are real numbers, an expression of the 𝑟𝑠 is an exponent expression with base 𝑟
and exponent 𝑠.
Let 𝑟 be a real number, 𝑚 an integer, and 𝑛 a natural number. Then if the principal 𝑛th root
of 𝑟 exists, then we define
An equation which can be written in the form 𝑎𝑥 + 𝑏 = 𝑐, where 𝑎, 𝑏 and 𝑐 are real numbers
and, is called a linear equation in one variable namely,𝑥.
A linear inequality in one variable is an inequality that can be written in one of the forms
where𝑎, 𝑏 and 𝑐 are real numbers and 𝑎 ≠ 0.
When two or more equations are satisfied by the same values of the unknowns, they are
called simultaneous equations.
A quadratic equation is an equation of the form of 𝑎𝑥2 + 𝑏𝑥 + 𝑐 = 0, where 𝑎, 𝑏 and 𝑐 are real
numbers.
The solutions of the quadratic equation 𝑎𝑥2 + 𝑏𝑥 + 𝑐 = 0 are given by the quadratic
formula
If 𝑓(𝑥) = 𝐶, where 𝐶 is a constant, then 𝑓′(𝑥) = 0
If 𝑓(𝑥) = 𝑥𝑛, where 𝑛 is any real number then 𝑓′(𝑥) = 𝑛𝑥𝑛−1.

The First Derivative Test
1. Find the critical values of 𝑓(𝑥).
2. Divide the domain of the function into intervals using critical values.
3. Examine the sign of 𝑓′(𝑥) on each of the intervals obtained in step 2.
4. As 𝑥 increases through the critical value,

• If 𝑓′(𝑥) changes sign from (+) to (-), then the critical point is a relative maxima
• If 𝑓′(𝑥) changes sign from (-) to (+), then the critical point is a relative minima
• If 𝑓′(𝑥) does not change sign, then critical point is an inflexion point.
The Second Derivative Test

• Suppose 𝑓′(𝑎) = 0
• If 𝑓′′(𝑎) < 0 then 𝑓(𝑥) has a relative maximum at 𝑎
• If 𝑓′′(𝑎) > 0 then 𝑓(𝑥) has a relative maximum at 𝑎
• If 𝑓′′(𝑎) = 0 , the test gives no information, that is (𝑎, 𝑓(𝑎)) may be a relative minimum
point, a relative maximum point or an inflexion point (Use the first derivative test).
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CMA: Quantitative Methods For Business

Lecturer Name: Mr.Ananth

No QUANTITATIVE METHODS FOR BUSINESS

1 Basic mathematics for business

2 Frequency distributions and presentation of data

3 Probability and sampling theory

6 Introduction to financial mathematics

• Set of numbers, laws of algebra, and their applications such as

The set of Natural Numbers denoted by 𝑁 is the set of counting numbers.

The set of Natural Numbers is also called positive integers.

An irrational number cannot be written as an integer divided by integer.

• Additive property of closure : 𝑎 + 𝑏 is a unique real number.

• Distributive law: 𝑎 (𝑏 + 𝑐) = 𝑎𝑏 + 𝑎𝑐.

Let 𝑟, 𝑠, 𝑎 and 𝑏 are real numbers

To eliminate 𝑥 we multiply (1) by 5 and (2) by 3, so as to make the coefficients of 𝑥 in

(1)x5 15𝑥 + 35𝑦 = 135 --(3)

Subtracting (4) from (3), we have

Therefore, the complete solution is 𝑥 = 3, 𝑦 = 1.

𝑎𝑥 + 𝑏 < 𝑐, 𝑎𝑥 + 𝑏 ≤ 𝑐, 𝑎𝑥 + 𝑏 > 𝑐, 𝑎𝑥 + 𝑏 ≥ 𝑐 where 𝑎, 𝑏, and 𝑐 are real numbers

Important rules of Inequalities

The 𝑏2 − 4𝑎𝑐 is called the discriminant of the quadratic equation.

The graph of a linear function is a straight line.

Convert the given equation to 𝑦 = 𝑚𝑥 + 𝑐 form. Then we have,

The parabola has a single vertex, that is, a lowest

Each parabola is symmetric with respect to a vertical

Exponential Function with Base 𝒃

1. 𝑦 is positive for all real numbers 𝑥.

2. As 𝑥 increases, 𝑦 increases greater and at a

3. As 𝑥 decreases, 𝑦 decreases getting closer and

4. The 𝑦 − 𝑖𝑛𝑡𝑒𝑟𝑐𝑒𝑝𝑡 is the point (0,1).

Common and natural logarithms can be evaluated using a calculator or a table.

Note the following important properties of the graph 𝑦 = log2 𝑥.

1. 𝑥 > 0 for all 𝑦

Differentiation is a method used to find the slope of a function at any point.

The process of finding the derivative is called differentiation.

To denote the derivative of 𝑦 = 𝑓(𝑥)at 𝑥, followings can be used.

Rule 1 – The Constant Rule

Rule 2 – The Power Rule

𝑓(𝑥) = 𝑥5 𝑓′(𝑥) = 5𝑥4

Rule 3-The constant –Multiple Rule

Rule 4 –The Summation Rule

Rule 4 can be extended to the derivative of any finite number of sums

The point (5,6) is known as a point of inflexion.

If 𝑎 is a critical value [𝑎, 𝑓(𝑎)]is called a critical point.

The First Derivative Test

3. Examine the sign of 𝑓′(𝑥) on each of the intervals obtained in step 2.

4. As 𝑥 increases through the critical value,

Marginal Revenue and Total Revenue

In Economics, marginal revenue (MR) is sometimes defined as the increase in total

This is not a precise definition though.

In fact, in nearly all situations where one is dealing

This is the inverse process to finding the derivative of a function.

The process of finding an integral of a function is called integration.

There are two kinds of integration, indefinite and definite.

where𝑎, 𝑏 and 𝑐 are real numbers and 𝑎 ≠ 0.

If 𝑓(𝑥) = 𝑥𝑛, where 𝑛 is any real number then 𝑓′(𝑥) = 𝑛𝑥𝑛−1.

3. Examine the sign of 𝑓′(𝑥) on each of the intervals obtained in step 2.

4. As 𝑥 increases through the critical value,

The Second Derivative Test

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