Differentiation and its Application in Business.

 
¾ What is Differnetiation ? 

¾ Definition. 

¾ Historical BackGround. 

¾ Notations Used to Represent the Differentiation. 

¾ Rules and Formulas 

¾ Computing The Derivatie (An Example) 

¾ Applications of Differnetiation. 

¾ Case Study 

 
 De
efinition
 
D
Derivative
e is a meaasure of hhow a function changes as itts input ch
hanges. Looosely 
s
speaking,  a derivattive can be thoughtt of as how much oone quanttity is changing 
i
in response to changes in so ome other quantityy. 

 
The graaph of a fu
unction, d
drawn in bblack, andd a tangennt line to tthat functtion, 
drawn in red. Th he slope o
of the tanggent line is equal to the derivative off the 
fun
nction at tthe markeed point.
 
 Historical BackGround 
¾ The concept of a derivative in the sense of a tangent line is a very old one, familiar to Greek geometers 

such as Euclid (c. 300 BCE), Archimedes (c. 287–212 BCE) and Apollonius of Perga (c. 262–190 BCE). 

¾ The use of infinitesimals to study rates of change can be found in Indian mathematics, perhaps as early as 

500 CE, when the astronomer and mathematician Aryabhata (476–550) used infinitesimals to study the 

motion of the moon. 

¾ The use of infinitesimals to compute rates of change was developed significantly by Bhāskara II (1114‐1185) 

¾ The Persian mathematician, Sharaf al‐Dīn al‐Tūsī (1135‐1213), was the first to discover the derivative of 

cubic polynomials, an important result in differential calculus 

¾ The modern development of calculus is usually credited to Isaac Newton (1643 – 1727) and Gottfried 

Leibniz (1646 – 1716). 
 N
Notations Used to Represen
nt the Diffferentiation 

1
1.Leibniz
z's notatio
on
F
First deriv
vative is denoted
d by
y

chaiin rule eassy to remeember

Higher deerivatives are expreessed
H
u
using the notation

2 Lagran
2. nge's nota
ation
Sometimees referred
S o the mosst common modern
d to as prrime notationone of n
n
notations for differrentiation..
  d 
and
To denotee the num
T mber of derrivatives beyond
b th
his point, some
s authhors use Roman
R
n
numerals in superscript, wheereas otheers place the
t numbeer in parenntheses:
  or  
3 Newton
3. n's notatiion

Newton's notation for differeentiation, also calleed the dott notation,, places a dot
N
o
over the function
f n
name to reepresent a time deriivative. Iff y = ƒ(t), then
  a  
and
4 Euler'ss notation
4. n
Euler's no
E otation usees a differrential operator D, which is applied too a functio
on ƒ to
2
g the first
give f derivaative Df. The
T secon nd derivattive is den
noted D ƒƒ, and the nth
d e is denoteed Dnƒ.
derivative
he subscript x is atttached to the D
IIf y = ƒ(x)) is a depeendent vaariable, theen often th
t clarify the indep
to pendent vaariable x. Euler's no otation is then writtten
  or   ,
 

 
 Formulas and Ru
ules: 

Deriivatives of poweers: if
where r is any
a real numberr, then

E
Exponential and
d logarithmic fu
unctions:

• Inversee trigonometric functions:

f

• Trigo
onometric functtions:
 Rulees for finding the derivativ
ve
S
Some of the most basic rules arre the following. • Quotient rule:
• Constant rule: if ƒ(x) is constant, then

for alll functions ƒ and

d g where
g ≠ 0.
• Sum rulee:
• Chain rule: If f(x)
f = h(g(x))), then
for all funcctions ƒ and g

and all reeal numbers a and

a b.

Product rule:

fo all functions ƒ and g.

for

E
Example :

F
Find The deerivative of ?

Here the
t second term
m was computeed using the cha
ain rule and thiird using the prroduct rule. Th
he known deriv
vatives of
ary functions x2, x4, sin(x), ln(x
the elementa x) and exp(x) = ex, as well as the
t constant 7, were also used
d.