Assignment - BUS 135.

Name :Abdullah Al Jabid

ID :2111416630

Optimization
Introduction
Optimization is a fundamental concept in various disciplines such as mathematics, engineering,
and economics. It involves finding the best solution from a set of feasible solutions. The
optimization process can be applied to functions with one variable or multiple variables, aiming
to maximize or minimize an objective function subject to certain constraints.

Determining a function relative maximum or minimum is the process of optimization. This is

accomplished with the methods devised and described below, without the use of a graph. In light
of the standard differentiable function

1. Find the critical point or points by taking the first derivative, setting it equal to zero, and
solving. This stage reflects the first-order derivative, which is a prerequisite. It pinpoints
every place on the function where it is plateauing rather than rising or falling. Any of
these locations could be the relative maximum or low.
2. Calculate the second derivative, check the sign, and evaluate it at the critical point or
points. If at a critical point a,

The function is concave at a, or at a relative maximum, if f"(a) <0.

The function is convex at a and, thus, at a relative minimum if f"(a) > 0.

The test is not conclusive if f"(a)=0.

This phase, called the second-order derivative test, or just the second-order condition,
represents a sufficiency requirement provided the required first-order condition is
satisfied. To sum up
 Relative maximum

f'(a) = 0
f''(a) < 0
Relative minimum

f'(a) = 0
f''(a) > 0

Keep in mind that there will only be one maximum and one minimum, referred to as a
global maximum and minimum, if the function is strictly concave (convex).

Single Variable Optimization

Definition

In single-variable optimization, we deal with functions that depend on a single independent

variable. The goal is to find the point where the function reaches its maximum or minimum
value.

Method of solving single Variable optimization:

● First order Test: The critical points of a function f(x) are found by setting the first
derivative f’(x) to zero. These points are potential maxima, minima, or saddle
points
● Second Derivative Test: To classify the critical points, we examine the second
derivative f”(x). If f”(x) > 0, the point is a local minimum; if f”(x) < 0. It is a local
maximum. Also, if f”(x) = 0, the test is inconclusive

Multiple Variable Optimization

Definition
In multiple-variable optimization, the objective function depends on two or more variables. The
goal is to find the point(s) where the function attains its maximum or minimum value,
considering all variables simultaneously.
Method of solving multiple Variable function: For a multivariable function such as z = f(x, y) to
be at a relative minimum or maximum, three conditions must be met

1. Simultaneous zero values of the first-order partial derivatives are required. This
shows that the function is at a relative plateau at the specified point (a, b), also
referred to as a critical point, rather than increasing or decreasing with respect to
the primary axes.

2. When assessed at the critical point (a, b), the second-order direct partial
derivatives have to be positive for a relative minimum and negative for a relative
maximum. This guarantees that, starting from a relative plateau at (a, b), the
function is, in the event of a minimum, convex and moves upward in proportion
to the principal axes, and, in the event of a maximum, concave and moves
downward in relation to the principal axes.

3. The product of the cross partial derivatives, which are also evaluated at the crucial
point, must be greater than the product of the second-order direct partial
derivatives evaluated at that moment. In order to prevent an inflection point or
saddle point, this additional condition is required.

Real-Life Applications of Optimization

Engineering:
Design Optimization: Minimizing material usage while maintaining structural integrity.
Control Systems: Optimizing the performance of control systems for stability and efficiency.

Economics:
Cost Minimization: Reducing production costs while maintaining quality.
Profit Maximization: Determining the best price and production level to maximize profits.

Logistics:
Route Optimization: Finding the shortest or fastest route for delivery trucks to minimize travel
time and fuel consumption.

Finance:
Portfolio Optimization: Allocating assets to maximize returns and minimize risk.
Machine Learning:
Model Training: Using optimization algorithms to minimize the loss function and improve model
accuracy.

Conclusion

Optimization is a versatile and powerful tool in various fields, enabling the efficient and effective
solution of complex problems. Whether dealing with single-variable or multiple-variable
functions, the principles and techniques of optimization provide a structured approach to finding
the best possible outcomes in real-world applications.