Mathematics for Management

Differentiation

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 Applications

• Production planning – optimum

• Financial planning – amount of money to

• Advertisement budget – optimum budget

HR • Optimum allocation of resources

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 Differentiation
◼ Differentiation is the action of computing a derivative.
◼ The derivative of a function f(x) is a measure of the rate at which the
value of the function changes with respect to the change of the
variable x.
◼ It is called the derivative of f with respect to x.
◼ If x and f(x) are real numbers, and if the graph of f is plotted against x,
the derivative is the slope of this graph at each point.

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 Differentiation of a Linear Function
◼ Let y is a linear function of x i.e. y = f(x) = mx + b, for real
numbers m and b
𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑦
◼ The slope of the above line is calculated as:
𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑥

∆𝑦 𝑓 𝑥 + ∆𝑥 − 𝑓 𝑥 𝑚𝑥 + 𝑚∆𝑥 + 𝑏 − 𝑚𝑥 + 𝑏
𝑖. 𝑒. = = =𝑚
∆𝑥 ∆𝑥 ∆𝑥
(x2, y2)
y
y=y2 – y1
change in y
(x1, y1) x=x2 – x1
change in x

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 Differentiation of Non-Linear Function
◼ If the function f is not linear (i.e. its graph is not a straight line), then the
change in y divided by the change in x varies over the considered range.
◼ Differentiation is a method to find a unique value for this rate of
change, not across a certain range (x), but at any given value of x.
◼ The idea is to compute the rate of change as the limit value of the ratio
of the differences Δy / Δx as Δx becomes infinitely small.

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 Differentiation - Notation
◼ An infinitesimal change in x is denoted by dx, and the derivative of y
𝑑𝑦
with respect to x is written as
𝑑𝑥

◼ Sometimes, the derivative with respect to x of a function f (x) is denoted

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 Differentiation - Definition
◼ The derivative of f with respect to x at a is, geometrically, the slope of the
tangent line to the graph of f at (a, f(a)).
◼ The slope of the tangent line is very close to the slope of the line
through (a, f(a)) and a nearby point on the graph, for example (a + h, f(a + h)).
◼ These lines are called secant lines.

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 Differentiation - Definition
◼ A value of h close to zero gives a good approximation to the slope of the tangent
line, and smaller values (in absolute value) of h will, in general, give
better approximations.
𝑓 𝑎 + ℎ − 𝑓(𝑎) 𝑓 𝑎 + ℎ − 𝑓(𝑎)
◼ The slope of the secant line is: 𝑚 = =
𝑎+ℎ −𝑎 ℎ

◼ Geometrically, the limit of the secant lines is the tangent line. Therefore, the
limit of the difference quotient as h approaches zero, if it exists, should represent
the slope of the tangent line to (a, f(a)). This limit is defined to be the derivative
of the function f at a:
′
𝑓 𝑎+ℎ −𝑓 𝑎
𝑓 𝑎 = lim
ℎ→0 ℎ

◼ When the limit exists, f is said to be differentiable at a

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 Differentiation - Example
◼ Find the derivative of 𝑓 𝑥 = 3𝑥 2 + 2𝑥

𝑓 𝑥+ℎ −𝑓 𝑥
𝑓 ′ 𝑥 = lim
ℎ→0 ℎ
2
3 𝑥+ℎ + 2 𝑥 + ℎ − 3𝑥 2 − 2𝑥
= lim
ℎ→0 ℎ

3 𝑥 2 + 2𝑥ℎ + ℎ2 + 2 𝑥 + ℎ − 3𝑥 2 − 2𝑥
= lim
ℎ→0 ℎ

6𝑥ℎ + 3ℎ2 + 2ℎ
= lim
ℎ→0 ℎ

= lim 6𝑥 + 2 + 3ℎ
ℎ→0
= 6𝑥 + 2

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 Differentiability and Continuity
◼ When a function is not continuous at x = c, it is also not differentiable at x = c.

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 Differentiation - Example
◼ Find the derivative of 𝑓 𝑥 = 𝑥 − 2

𝑓 2+ℎ −𝑓 2 𝑓 2+ℎ −𝑓 2
lim lim
ℎ→0+ ℎ ℎ→0− ℎ

ℎ ℎ
= lim = lim
ℎ→0+ ℎ ℎ→0− ℎ
+ℎ −ℎ
= lim = lim
ℎ→0+ ℎ ℎ→0− ℎ

= +1 = −1

These one-sided limits are called the derivatives from the left and from the right, respectively

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 Differentiability and Continuity
A function that is not differentiable at a point at which its graph has a
sharp turn or a vertical tangent line.

The relationship between continuity and differentiability is summarized

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Basic Differentiation Rules

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The Constant Rule

Figure 2.14 18
The Power Rule

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Example – Using the Power Rule

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The Constant Multiple Rule

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Example – Using the Constant Multiple Rule

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The Sum and Difference Rules

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Example – Using the Sum and Difference Rules

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Derivatives of the Sine and Cosine Functions

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Example – Derivatives Involving Sines and Cosines

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 The Product Rule
You learned that the derivative of the sum of two functions is simply the
sum of their derivatives. The rules for the derivatives of the product and
quotient of two functions are not as simple.

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 Example – Using the Product Rule

Find the derivative of

Solution:

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The Quotient Rule

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 Example 4 – Using the Quotient Rule

Find the derivative of

Solution:

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The Chain Rule

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 The Chain Rule

When applying the Chain Rule, it is helpful to think of the

The derivative of y = f (u) is the derivative of the outer

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Example – Decomposition of a Composite Function

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Summary of Differential Rules

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 Examples
Find the derivative of
Solution:
Examples
Examples
Thank You !!!