1 Dear Fellows in Business and Academia!
1 Dear Fellows in Business and Academia!
1 Dear Fellows in Business and Academia!
Wiseman Teta
May 2015
ii
Contents
iii
iv CONTENTS
CONTENTS 1
Preface
The purpose of this module remains to provide a ”cookbook” for implementing
analytical mathematics in Business for Optimisation purposes.
2 CONTENTS
0.1. LIMITS OF FUNCTIONS 3
1. What is the rate of change of profit when sales reach 1000 units?
P (x) = 2x (1)
In this case the input values are the number of Kgs sold and P (x) the profit
made. For example if the sales were 5 Kgs today, we input the value of x
into the function to get the profit made of $10
Example2
Suppose the total cost function of producing x units of a product is:
However, with a minimal level of critique we can observe that in reality, the
constant relationship assumed in both cases do not hold at certain levels of
production. As economies of scale begin to set-in, for example in example
1, the costs of ordering can significantly fall at high levels of x i.e when the
order quantity increases, the ordering costs are more likely to fall as quantity
discounts are offered, large scale transport is used etc.
Now we face questions like:
Definition of a Limit
Let f (x) be a function and let a and L be Real numbers. If, as x takes
values closer and closer to to a the corresponding values of f (x) get closer
and closer to L, then L is the limit of f (x) as x approaches a, written
Example: To evaluate
x+3
lim (7)
x−→0 x−1
0.1. LIMITS OF FUNCTIONS 5
x f(x) x f(x)
3.1 2.904762 2.9 3.105263
3.09 2.913876 2.91 3.094241
3.08 2.923077 2.92 3.083333
3.07 2.932367 2.93 3.072539
we make the following table of values: 3.06 2.941748 2.94 3.061856
3.05 2.95122 2.95 3.051282
3.04 2.960784 2.96 3.040816
3.03 2.970443 2.97 3.030457
3.02 2.980198 2.98 3.020202
3.01 2.99005 2.99 3.01005
In the first collumn from the left we can see that the values of x are ap-
proaching 3 from above and the values are approaching 3, the corresponding
values of f (x) are fast approaching 3. As well, as the values of x are also
approaching 3 from below in collumn 3, the corresponding values of f (x)
are monotonically approaching 3.
Now, we resort to a more handy way of evaluating limits:
Limit of a polynomial
Let f (x) be a polynomial function, a any Real number, then
lim f (x) = f (a) (8)
x−→a
Example Assume the farm manager in 2 wants to find out what value will
his total costs approach as his production approaches 1000 units. Thus,
Ratioanl Fraction
p(x)
Let f (x) = q(x)
, where q(x) 6= 0, then
limx−→a p(x)
limx−→a f (x) = limx−→a q(x)
where limx−→a q(x) 6= 0
3+3
=
3−1
= 3
2.
x2 + 2x + 7 1 + 2(1) + 7
lim = (11)
x−→1 3x2 3(1)
10
=
3
= 3.3
3. Task!
(x − 4)(x + 7)
lim (12)
x−→1 (x − 2)(x + 1)
Existence of Limits
The Limit of a function may not exist. This is concluded if any of the
following 4 properties hold:
4. If
lim f (x) = L (16)
x−→a−
and
lim f (x) = M (17)
x−→a+
and L 6= M ,then
(2+h)2 −4
Task! Find limh−→0 h
Limit Theorems
Suppose limx−→a f (x) and limx−→a g(x) both exist. Then we have the
following results:
1. If k is a constant, then
Example
Example
3.
lim [f (x) ± g(x)] = lim f (x) ± lim g(x) (23)
x−→a x−→a x−→a
Example
4.
lim [g(x)f (x)] = [ lim g(x)][ lim f (x)] (25)
x−→a x−→a x−→a
Example
Example
2x limx−→1 2x
lim = (29)
x−→1 x+4 limx−→1 x + 4
2.1
=
1+4
3
=
5
Further Examples
1. Find
x2 − x − 1
lim √ (30)
x−→3 x+1
0.1. LIMITS OF FUNCTIONS 9
Solution
x2 − x − 1 limx−→3 (x2 − x − 1)
lim √ = √ (31)
x−→3 x+1 limx−→3 x + 1
limx−→3 (x2 − x − 1)
= p
limx−→3 (x + 1)
2
3 −3−1
= √ (32)
3+1
5
=
2
2. Suppose limx−→2 f (x) = 3 and limx−→2 g(x) = 4, Use the rules of
limits to evaluate the following:
• limx−→2 [f (x) + 5g(x)]
Solution
Solution
x2 +x−6
• Find limx−→2 x−2
x2 + x − 6 (x + 3)(x − 2)
= (i.ef actorisingthenumerator)
(35)
x−2 (x − 2)
= x+3
therefore,
x2 + x − 6
lim = lim x + 3 (36)
x−→2 x−2 x−→2
= 2+3
= 5
√
x−2
• Find limx−→4 x−4
[5]
√ √ √ √ √ √
x−2 x. x − 2 x + 2 x − 4
x+2
.√ = √ (37)
x−4 x+2 (x − 4)( x + 2)
x−4
= √
(x − 4)( x + 2)
1
= √
x+2
0.1. LIMITS OF FUNCTIONS 11
√
x−2 1
lim = √
x−→4 x−4 4+2
1
=
2+2
1
=
4
Caution! Simply beacuse the denominator in a limit evaluates to zero does’nt
mean the limit does not exist. Before making that conclusion try to simplify
the expression using algebra.
Task!
x+1
• Find limx−→1 x2 +1
. Show why the limt does not exist.[10]
Limits at Infinity
1.
1
lim =0 (38)
x−→∞ xn
2.
1
lim @ (39)
x−→−∞ xn
3.
lim e−f (x) = 0 (40)
x−→∞
4.
lim ef (x) = 0 (41)
x−→−∞
Worked Examples
12x2 −15x+12
1. Find limx−→∞ x2 +1
Solution
12 CONTENTS
8x+6
2. Find limx−→∞ 3x−1
We can apply Rule 38 after dividing every term by the highest power
of x which is in this case x(please note, dividing every term by x only
means diving the numerator and the denominator by x) as follows:
8x 6
8x + 6 +
lim = lim x x
(43)
x−→∞ 3x − 1 x−→∞ 3x − 1
x x
limx−→∞ [8 + x6 ]
=
limx−→∞ [3 − x1 ]
1
limx−→∞ 8 + 6 limx−→∞ x
=
limx−→∞ 3 − limx−→∞ x1
8 + 6.0
=
3−0
8
=
3
3x+2
3. Find limx−→∞ 4x3 −1
Solution
0.2. CONTINUITY 13
= 0
3x2 +2
4. Find limx−→∞ 4x−3
Solution
2
3x2 + 2 3+ x2
lim = lim (45)
x−→∞ 4x − 3 x−→∞ 4 − 3
x x2
3+0
=
0−0
3
=
0
Dividing by zero is not defined so this limit does not exist.
Exercise
1. Employee productivity
A company training program has determined that on average, a new
employee produces P (s) items per day after s days of on-the-job train-
ing, where
75s
P (s) = (46)
s+8
Find and interpret lims−→∞ P (s)[5]
x2 −4x−12
2. Find lims−→6 x−6
0.2 Continuity
A function f (x) is continuous at x = c if the following 3 conditions are
satisfied:
14 CONTENTS
1. f(c) is defined
a) f(x)
0 x
-4
b)
f(x)
-2 0 x
Figure 1:
16 CONTENTS
a)
f(x)
g(x)
0 c x
b)
f(x)
m(x)
S(x)
t(x)
c x
Figure 2:
0.2. CONTINUITY 17
Suppose you are an Agro-dealer who specialises in selling tomatoes and each
crate goes for $2 with cost price of $1 and lets further assume that the to-
tal demand for tomatoes in your market is 10 crates. When you order zero
crates of tomatoes, the net revenue generated is obviously zero. When you
order 5 crates, the net revenue will be $5, if you increase to 7 crates, revenue
also rises to $7, you increase your order quantity to 10 crates to get a total
revenue of $10, when you increase again to 14 crates, the net revenue falls
to $6. Therefore the optimal order quantity is 10 crates i.e when you order
10 crates that’s when you realise the maximum net revenue(profit). Now
the challenge is that in real life we won’t be knowing the total demand in
the market because of market complexities;however we can formulate our net
revenue function and locate its maximum point.
start to fall, as the fixed costs are being shared amongst many products and
as this continues, breakages and defectives start to increase and also to con-
tinually increase output this can mean setting up another plant thus average
costs start to rise again. Now, since the AC starts by falling and later on
starts rising it means it a minimising function and the task is to be able to
locate that minimum point.
As you delve further into this exciting exploration we wish you Bon Voyage!
0.3 Differentiation
This the process of find gradients of functions.
YA − YB
Grad = (48)
XA − XB
4−1
=
0−2
= −1.5
We employ the same idea when find the gradient of a function at a particular
point. Suppose you are given a function y = f (x) and you are required to
find the gradient at the point x = a. We create another point which is very
very near to x = a by moving by a VERY small magnitude which we shall
call h, now we will be at x = a + h. We then evaluate the Y or f(x) values
and we find the gradient as follows:
dy
The first derivative can be written in any of the following ways:f 0 (x), dx , Dx , y 0 , fx
0
Now, f (x) is given by the following:
f (a + h) − f (a)
f 0 (x) = lim (49)
h−→0 a+h−h
0.3. DIFFERENTIATION 19
f(x)
f(a+h)
f(a) h
0 x=a x=a+h x
As the movement in h becomes very small the 2 points can be approximated by a straight line.
Answer implies when we are finding the gradient of a function we need a conditioning
statement of h to ensure that it is sufficiently small.
Figure 3:
20 CONTENTS
f (a + h) − f (a)
= lim
h−→0 h
Thus the derivative of a function f (x) at a point a is defined as,
f (a + h) − f (a)
f 0 (x) = lim (50)
h−→0 h
0
The process that produces f (x) is known as differentiation.
Example
1. Find the gradient of f (x) = x2 + 2 at x = −1[4]
Solution
f (a + h) − f (a)
f 0 (x) = lim (51)
h−→0 h
f (−1 + h) − f (−1)
= lim
h−→0 h
(h − 1) + 2 − (−12 + 2)
2
= lim
h−→0 h
2
h − 2h + 1 + 2 − 1 − 2
= lim
h−→0 h
h2 − 2h
= lim
h−→0 h
h(h − 2)
= lim
h−→0 h
= lim −2 + h
h−→0
⇒ f 0 (x) = −2 (52)
f (a + h) − f (a)
f 0 (x) = lim (53)
h−→0 h
f (0 + h) − f (0)
f 0 (0) = lim
h−→0 h
h2 − h − 0
= lim
h−→0 h
h(h − 1)
= lim
h−→0 h
= lim h − 1
h−→0
= −1
0.3. DIFFERENTIATION 21
3. Application Problem
Lindsay finds that after introducing her dog Buddy to a new brand of
food, Buddy’s weight in K.gs begins to increase. After x weeks on the
new food, Buddy’s weight is approximated by
√
w(x) = x + 17 (54)
• Find the weight of Buddy in week 4 and the rate of change of her
weight at that time.
Solution
w(a + h) − w(a)
w0 (x) = lim (55)
h−→0
√ h √
4 + h + 17 − ( 4 + 17)
= lim
h−→0
√ h √
4 + h + 17 − 4 − 17
= lim
h−→0
√ √h
4+h− 4
= lim
h−→0
√ h
4+h−2
= lim now refer to37
h−→0
√ h √
4+h−2 4+h+2
= lim √
h−→0 h 4+h+2
√ √ √ √
4+h 4+h−2 4+h+2 4+h−4
= lim √
h−→0 h( 4 + h + 2)
4+h−4
= lim √
h−→0 h( 4 + h + 2)
h
= lim √
h−→0 h( 4 + h + 2)
1
= lim √
h−→0 4+h+2
1
= √
4+2
1
=
2+2
22 CONTENTS
= 0.25
In week 4, x = 4
√
⇒ w(4) = 4 + 17 (56)
= 2 + 17
= 19K.gs
1. Constant Rule
If y = k, where k is any real number(k ⊆ < ), then
dy
=0 (57)
dx
dy
Find dx given that:
a) y = π b)y = 25 c) y = 100050
Solution
2. Power Rule
If y = xn ,then
dy
= nxn−1 (58)
dx
dy
Find dx given that:
1
a) y = x2 b)y = x100 c) y = x 2
a)
y = x2 (59)
dy
⇒ = 2x2−1
dx
= 2x
b)
y = x100 (60)
dy
⇒ = 100x100−1
dx
= 100x99
c)
1
y = x2 (61)
dy 1 1
⇒ = x 2 −1
dx 2
1 1
= x− 2
2
1 1
= 1
2 x2
1 1
= √
2 x
1
= √
2 x
24 CONTENTS
dy
3. Constant Times a function. Given that y = kf (x),k ⊆ <; if dx
∃
then,
dy
= kf 0 (x) (62)
dx
dy
Find dx
given that:
1
a) y = 8x4 b)y = 3x7
a)
y = 8x4 (63)
dy
⇒ = 8[4x4−1 ]
dx
dy
= 8[4x3 ]
dx
dy
= 32x3
dx
(64)
b)
1
y = (65)
3x7
1 1
= [ ]
3 x7
1 −7
= [x ]
3
dy 1
⇒ = [−7x−7−1 ]
dx 3
1
= [−7x−8 ]
3
1 −7
= [ ]
3 x8
7
= − 8
3x
0.3. DIFFERENTIATION 25
a)
dy
⇒ = 6[3x3−1 ] + 15[2x2−1 ]
dx
= 6[3x2 ] + 15[2x]
= 18x2 + 30x
(68)
b)
√ 5
y = 12x4 − 6 x + (69)
x
1
= 12x − 6x 2 + 5x−1
4
dy 1 1
⇒ = 12[4x4−1 ] − 6[ x 2 −1 ] + 5[−1x−1−1 ]
dx 2
1 1
= 12[4x3 ] − 6[ x− 2 ] + 5[−1x−2 ]
2
1 −1
= 48x − 6. x 2 − 5x−2
3
2
1 1
= 48x3 − 3. 1 − 5. 2
x2 x
3 5
= 48x3 − √ − 2
x x
26 CONTENTS
5. Product Rule
If y = u(x).v(x) and if u0 (x) and v 0 (x) ∃ ,then:
dy dv du
= u. + v. (70)
dx dx dx
dy
Find dx
given that:
√
a) y = 4x2 (2x + 3) b)y = x(x + 4)6
a)
Now, let
u = x2 v = 2x + 3
u0 (x) = 2x v 0 (x) = 2
dy
= u(x)v 0 (x) + v(x)u0 (x) (72)
dx
= 4[x2 .2 + (2x + 3).2x]
= 4[2x2 + 2x(2x + 3)]
= 4[2x2 + 4x2 + 6x]
= 4[6x2 + 6x]
= 4[6x(x + 1)]
= 24x(x + 1)
0.3. DIFFERENTIATION 27
Verify this solution by first expanding the bracket in y and then differ-
entiating term by term.
a)
√
y = x(x + 4)6 (73)
1
= x 2 (x + 4)6
Now, let
1
u = x2 v = (x + 4)6
1
u0 (x) = 12 x− 2 v 0 (x) = 6(x + 4)5
dy
= u(x)v 0 (x) + v(x)u0 (x) (74)
dx
1 1 1
= x 2 .6(x + 4)5 + (x + 4)6 . x− 2
2
√ 5 6
1 1
= 6 x(x + 4) + (x + 4) . . 1
2 x2
√ 1 1
= 6 x(x + 4)5 + (x + 4)6 . . √
2 x
6
√ (x + 4)
= 6 x(x + 4)5 + √
2 x
√ (x + 4)
= (x + 4)5 [6 x + √ ]
2 x
u(x)
6. If y = v(x)
and if v(x) = 0 and v 0 (x) and u0 (x)∃
a)
u = 2x − 1 v = 4x + 3
u0 (x) = 2 0
v (x) = 4
b)
u = 2x2 v =x−1
u0 (x) = 4x v 0 (x) = 1
4x2 − 4x − 2x2
= (83)
(x − 1)2
2x2 − 4x
= (84)
(x − 1)2
2x(x − 2)
= (85)
(x − 1)2
(86)
dy dy du
= . (87)
dx du dx
Assuming that du’s on the RHS cancel we have the RHS = LHS
You have Profit as a function of Sales;P = f (s), and you have Sales
as a function of Time;S = g(t), Now if you want the rate of change of
Profit with respect to time:
dP dP dS
= . (88)
dt dS dt
Examples
dy
Find dx given that:
√
(a) y = u and u = 3x2 − 5x
3
(b) y = u and u = x
a)
1
y = u2 u = 3x2 − 5x
dy du
du
=1 dx
= 6x − 5
30 CONTENTS
dy dy
= . (89)
dx du