Derivative's Project
Derivative's Project
Derivative's Project
Myself under the supervision of Mr. Jay Ram Subedi and has not been submitted
Signature:
Stream: Science-D6
Date:
The project work report entitled ‘DERIVATIVE AND RATE OF CHANGE’ submitted by
Kundan Yadav, of Kathmandu Model Secondary School, Bagbazaar,Kathmandu, Nepal is
prepared under my supervision as per the procedure and format requirements laid by the
Department of Mathematics, Kathmandu Model Secondary School, as the partial fulfillment
of the requirements of the internal evaluation of grade XI. I, therefore, recommend the report
for evaluation.
Signature:
Date:
Appendix D: Endorsement
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We hereby endorse the project work report entitled “Derivative and Rate of change”
submitted by Kundan Yadav, student of Kathmandu Model Secondary School,
Kathmandu, Nepal in partial fulfillment of the requirements of the mathematics subject
internal evaluation of class 11.
Signature: Signature:
Date: Date:
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Appendix E: Acknowledgements
We would also like to thank our parents and friends who helped us a
lot in finalizing the project within a limited time frame. With regards
Raghab Pudasaini
CHAPTER I: INTRODUCTION
Historical Background
The logic of the derivative instruments may be seen around 2000 BC in the Middle East. There was a
document in Assyria in the Hammurabi’s reign, authorizing the bearer to receive in 15 days in the City of
Eshama on the Tigris 8 ½ mince of lead deposited with the Priestess of the Temple (Einzig, 1970, 15). This
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contract can be considered as the first evidence of a derivative trading. It was an option in today’s
terminology. During the Greek civilization, Aristotle in his Politics (332 BC) provides another evidence of
derivatives before the time of Christ involving philosopher Thales the Milesian. He purchased options on
olive pressers and based on his astronomical calculations he amassed a fortune (Chance, 1995; Poitras, 2001).
In the 17th century, European mathematicians Isaac Barrow, René Descartes, Pierre de Fermat, Blaise Pascal,
John Wallis and others discussed the idea of a derivative. In particular, in Methodus ad disquirendam
maxima and minima and in De tangentibus linearum curvarum distributed in 1636, Fermat introduced the
concept of adequality, which represented equality up to an infinitesimal error term.] This method could be
used to determine the maxima, minima, and tangents to various curves and was closely related to
differentiation
Before Newton and Leibniz, the word “calculus” referred to any body of mathematics, but in the following
years, "calculus" became a popular term for a field of mathematics based upon their insights. Newton and
Leibniz, building on this work, independently developed the surrounding theory of infinitesimal calculus in
the late 17th century. Also, Leibniz did a great deal of work with developing consistent and useful notation
and concepts. Newton provided some of the most important applications to physics, especially of integral
calculus.
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Lebintz Sir Isac Newton
Most of the contribution to the development and evolution of calculus goes to Sir Isaac Newton and Leibniz.
By the middle of the 17th century, European mathematics had changed its primary repository of knowledge.
In comparison to the last century which maintained Hellenistic mathematics as the starting point for research,
Newton, Leibniz and their contemporaries increasingly looked towards the works of more modern thinkers.
Objectives
- Optimization(differentiation)
- Averaging/summing (integration)
- Understanding asymptotic behavior(limits)
- Modeling dynamical behavior (rates etc.) [differential equations]
- Estimation (Taylor Series)
- Understanding infinity (general)
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Let the function f be defined in the interval (a , b). Then the derivative of the function f at point x of the
interval is defined to be the limiting value of
lim f (x+ Δx)−f (x)
Δ x→ 0
Δx
Again if a is fixed point then, the derivative of f ( x) at x =a denoted by f ' (a) is defined by
lim f ( x)−f ( a)
x→a
x−a
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The derivative ft(x) = 2x has a second interpretation. We can forget about the original function f and view ft as a
function in its own right. The graph of ft is pictured on the right above. As always, the height of the graph
above a number is given by the function evaluated at the number. For instance, the height of the graph above
−2 is ft(−2) = −4 (so the graph is actually below the number due to the negative sign).
Taking x = −2 as an example, we have seen two ways to interpret ft(−2) (which equals
−4). On the one hand, it is the slope of the line tangent to the graph of the original function f above −2. On
the other hand, it is the height of the graph of the derivative ft above −2.
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Elements of Derivatives:
a) Tangent and Normal To a Curve
A tangent is a line that touches the curve at a point and doesn’t cross it, whereas normal
is perpendicular to that tangent.
Now the straight-line equation which passes through a point having slope m could be written as;
y – y1 = m (x – x1)
We can see from the above equation, the slope of the tangent to the curve y = f(x) and at the point
P (x1, y1), it is given as dy/dx at P (x1, y1) = f'(x). Therefore,
Equation of the tangent to the curve at P (x1, y1) can be written as: y – y1
= f'(x1) (x – x1)
Equation of normal to the curve is given by; y –
y1 = [-1/ f'(x1)] (x – x1)
Or
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b) Maxima and Minima
To calculate the highest and lowest point of the curve in a graph or to know its turning point, the
derivative function is used.
● When x = a, if f(x) ≤ f(a) for every x in some open interval (p, q) then
f(x) has a
Relative Maximum value.
● When x= a, if f(x) ≥ f(a) for every x in the domain then f(x)
has an Absolute Minimum value and the point a is the point of the
minimum value of f.
● When x = a, if f(x) ≥ f(a) for every x in some open interval (p, q) then
f(x) has a
Relative Minimum value.
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c) Monotonicity
Functions are said to be monotonic if they are either increasing or decreasing in their entire domain. f(x) = ex,
f(x) = nx, f(x) = 2x + 3 are some examples.
Functions which are increasing and decreasing in their domain are said to be non- monotonic
A function is said to be monotonically decreasing at x = a if f(x) satisfy; f (x + h) < f(a) for a small positive h
f'(x) will be positive if the function is increasing f'(x) will be negative if the function is decreasing f'(x) will be
e) Point of Inflection
For continuous function f(x), if f'(x0) = 0 or f’” (x0) does not exist at points where f'(x0) exists and if f”(x)
changes sign when passing through x = x0 then x0 is called the point of inflection.
a. If f” (x) < 0, x ∈ (a, b) then the curve y = f(x) in concave downward
b. if f” (x) > 0, x ∈ (a, b) then the curve y = f(x) is concave upwards in (a, b)
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Rate of Change
Generally, the rate of change is defined as the relationship linking the change that occurs between two
quantities. It is known as the gradient or slope when changes occur during the comparison of two quantities.
The average rate of change of an arbitrary function ƒ on an interval is represented geometrically by the slope
of the secant line to the graph of f. The instantaneous rate of change of ƒ at a particular point is represented
by the slope of the tangent line to the graph of ƒ at that point.
Colloquially, rate of change means the derivative i.e. the rate of change of y with respect to z. Or it could be
the rate of change of a cylinder's area, A, with respect to the change of its radius, r. Thus, the introduction
and subsequent proliferation of the concept of rate of change and its slightly more nuanced brother,
instantaneous rate of change lead to the development of differential calculus. The whole instantaneous rate
of change vs rate of change thing represents an important delineation because a rate of change over a fixed
interval is an average by definition and this question concerns the idea of a derivative.
So where does the derivative come from, anyway? Well... it comes from the average when we make the
interval of the average very small and centered at a single point; this is the idea of transforming the secant
line into the tangent line at a point, thus finding the instantaneous rate of change at that point. Ok, so it is
safe to say that for the sake of this question, the applications of "rate of change" are essentially the same as
the applications of differential calculus.
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APPLICATIONS OF DERIVATIVES AND RATE OF CHANGE
:As a mathematical tool derivative may see a simple thing but it is not, it's a vast and deep topic. In our daily
life we directly or indirectly use and apply the law of derivatives. Some of the real life application of
derivative are discussed below:
1. In Business:_
- Today's usage of derivatives has seen the development of multiple strategies, into which companies
incorporate derivatives. The use of hedging through derivatives is still highly prevalent. Companies, both in-
and-out of the financial industry have begun to use derivatives as a method of speculating and generating
income. Arbitrage firms have also started to use derivatives as a method of creating arbitrage opportunities.
2. In Physics:-We are often looking at how things change over time.The rate or ratio of change of
variable quantity with the invariant quantity. Some of them are discussed below
c. For so-called "conservative"forces, there is a function V(x) such that the force depends only on
position and is minus the derivative of V, namely F(x)=-dV(x)dxF(x)=-dV(x)dx. The function V(x)
is called the potential energy. For instance, for a mass on a spring the potential energy is
12kx212kx2, where k is a constant, and the force is -kx.
d. The kinetic energy is 1/2mv2. Using the chain rule we find that the total energy is
ddt(1/2mv2+V(x))=mvdvdt+V (x)dxdt-mva-Fv= (ma-F)v=Oddt(1/2mv2+V(x))=m dv
dt+V'(x)dxdt-mva-Fv=(ma-F)v=0, since F=ma.
3. In Biology:
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- Derivatives are used to model population growth, ecosystems, the spread of diseases, and various
phenomena. The area that I will focus on particularly is population growth. Suppose n =f(t) is the number
of individuals of some species of animal or plant population at time t,the change in the population size in
the population size between n=f t1 and t2. AN=f(t2)-f(t1)
The average rate of growth then is:
Average rate of growth = (An / At)= (f(t2) - f(t1))/(t2-t1)
The instantaneous rate of growth is the derivative of the function n with respect to t
i.e. growth rate =lim(At > 0) (n/. t) = (dn/dt)
. For example: suppose that a population of bacteria doubles its population, n, every hour. Denote by no the initial
population
i.e. n(0)-no. In general, then, n(t)=2t no
Thus the rate of growth of the population at time t is (dn/dt)=no2tln2
4. In Chemistry
- The use of derivatives in chemistry is when you want to find the concentration of an element in a product.
A derivative is used to calculate the rate of reaction and compressibility in chemistry.
5.In Economics
- With the help of the derivatives, we can find the optimum points of economic functions, if any. For
example, the use of derivatives is helpful to compute the level of output at which the total revenue is
the highest, the profit is the highest and (or) the lowest, marginal costs and average costs are the
smallest, etc.
- These financial securities are commonly used to access certain markets and may be traded to hedge
against risk. Derivatives can be used to either mitigate risk (hedging) or assume risk with the
expectation of commensurate reward (speculation).
- A well-functioning derivatives market makes it possible for firms to share risks efficiently and allows
them to conduct projects with relatively higher risk and consequently to boost the economic growth.
- Futures and derivatives help increase the efficiency of the underlying market because they lower the
unforeseen costs of purchasing an asset outright.
- Based on our research and findings we can conclude that The essence of calculus is the derivative,
founded and developed by great scientists of the era, Sir Isaac Newton and Leibnitz. The derivative is
the instantaneous rate of change of a function with respect to one of its variables. This is equivalent to
finding the slope of the tangent line to the function at a point. It simplifies the complex calculations
and is one of the integral portions of calculus. It also allows us to find the minima, maxima of the
functions which are widely used in our daily life. The most used application of derivatives is the rate
of change which basically is used everywhere in market analysis, trading, crypto exchanges, cost
determination, marginal price detection, chemical industries.
CONCLUSION
Derivatives and its principles show up in almost every field of our lives. Basically, they are known as the
ratio of variable quantity with respect to constant or unchanging quantity it has been used since the advent of
modern humanity. Their importance simply can't be ignored.
As we explored the various topics and fields where Derivatives along with its principles are used, we went
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through the pure mathematical meaning of it as well. Exploring the applications gave us an idea of how
broad the topic derivative as a whole is. As the technologies continue to grow, new concepts in this field may
also be discovered resulting in newer applications of the topic. This topic requires prior knowledge of math
in the field of derivatives and great assist in terms of the complexity and usefulness. .
This project beautifully explored the idea of derivatives and went through the major fields it is used in. Its
applications and components were found out , and each of them were explained in brief.
BIBLIOGRAPHY
Sites Referred:-
www.researchgate.net
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www.cuemath.com
https://math.libretexts.org/
www.geeksforgeeks.org
www.sciencedirect.com
www.britannica.com
https://en.wikipedia.org/
APPENDICES
Appendix B: Declaration
Appendix D: Endorsement
Appendix E: Acknowledgement
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