The pounds of bananas sold each week at all Metro Seattle Albertsons stores as a function of price, p , in dollars/pound(lb.) is given by q(p) = 100e7.5-1.5p 1. Express the Revenue function in terms of p and then find both the first and second derivatives of the revenue function. Type each of these in your text box, using appropriate standard mathematical formatting notation (like that shown above) in Excel. 2. Use Excel over an interval of [0, 6] in increments of .25 to create values for all 3 of your functions from part 1. This is hard! You should be getting the beginning values shown on the next page. Keep at it until you do!! You must create these values by typing in and using the correct formulas. 3. Use Excel to determine exactly where there are any Maximum and/or Minimum values for Revenue. In your text box, explain fully and completely how you determine where to look, and how you know from the First Derivative Test that you have a maximum or a minimum value.
Minimization
In mathematics, traditional optimization problems are typically expressed in terms of minimization. When we talk about minimizing or maximizing a function, we refer to the maximum and minimum possible values of that function. This can be expressed in terms of global or local range. The definition of minimization in the thesaurus is the process of reducing something to a small amount, value, or position. Minimization (noun) is an instance of belittling or disparagement.
Maxima and Minima
The extreme points of a function are the maximum and the minimum points of the function. A maximum is attained when the function takes the maximum value and a minimum is attained when the function takes the minimum value.
Derivatives
A derivative means a change. Geometrically it can be represented as a line with some steepness. Imagine climbing a mountain which is very steep and 500 meters high. Is it easier to climb? Definitely not! Suppose walking on the road for 500 meters. Which one would be easier? Walking on the road would be much easier than climbing a mountain.
Concavity
In calculus, concavity is a descriptor of mathematics that tells about the shape of the graph. It is the parameter that helps to estimate the maximum and minimum value of any of the functions and the concave nature using the graphical method. We use the first derivative test and second derivative test to understand the concave behavior of the function.
The pounds of bananas sold each week at all Metro Seattle Albertsons stores as a function of price, p , in dollars/pound(lb.) is given by q(p) = 100e7.5-1.5p
1. Express the Revenue function in terms of p and then find both the first and second derivatives of the revenue function. Type each of these in your text box, using appropriate standard mathematical formatting notation (like that shown above) in Excel.
2. Use Excel over an interval of [0, 6] in increments of .25 to create values for all 3 of your functions from part 1. This is hard! You should be getting the beginning values shown on the next page. Keep at it until you do!! You must create these values by typing in and using the correct formulas.
3. Use Excel to determine exactly where there are any Maximum and/or Minimum values for Revenue. In your text box, explain fully and completely how you determine where to look, and how you know from the First Derivative Test that you have a maximum or a minimum value.
4. Write a contextual sentence for any critical values, explaining what the revenue is at each point and whether this is a maximum or a minimum.
5. Use Excel to find where the exact Point of Inflection for the Revenue function occurs.
6. In your text box near this work, explain what you are looking for and how you know that you have a point of inflection. Make sure you explain whether the function changes from concave up to down or vice versa and how you know that. Then explain clearly in context what this particular value represents.
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