Business Calculus I

Math 1743
University of Oklahoma
Spring 2023

Student Workbook

This workbook is adapted from Calculus Concepts: An Informal Approach to the Mathematics of
Change, 5/e by Latorre et. al.
CONTENTS CONTENTS

Contents

1 Ingredients of Change: Functions & Limits 1

1.1 - Functions: Four Representations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 - Function Behavior and End Behavior Limits . . . . . . . . . . . . . . . . . . . . . . 9
1.3 - Functions with Unbounded Input . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.4 - Linear Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1.5 - Exponential Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
1.6 - Models in Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
1.7 - Constructed Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
1.8 - Logarithmic Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
1.9 - Quadratic Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
1.10 - Logistic Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
1.11 - Cubic Functions & Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

2 Describing Change: Rates 65

2.1 - Measures of Change over an Interval . . . . . . . . . . . . . . . . . . . . . . . . . . 65
2.2 - Measures of Change at a Point - Graphical . . . . . . . . . . . . . . . . . . . . . . . 72
2.3 - Rates of Change: Notation & Interpretation . . . . . . . . . . . . . . . . . . . . . . 78
2.4 - Rates of Change: Numerical Limits & Nonexistence . . . . . . . . . . . . . . . . . . 83
2.5 - The Derivative, Algebraically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
2.6 - Rate of Change Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

3 Determining Change: Derivatives 103

3.1 - Simple Rate of Change Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
3.2 - Exponential & Logarithmic Rate of Change Formulas . . . . . . . . . . . . . . . . . 109
3.3 & 3.4 - Rate of Change of Composite Functions . . . . . . . . . . . . . . . . . . . . . 114
3.5 & 3.6 - Rate of Change of Product Functions . . . . . . . . . . . . . . . . . . . . . . 125

4 Analyzing Change: Applications of Derivatives 133

4.2 - Relative Extreme Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
4.3 - Absolute Extreme Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
4.4 - Inflection Points & Second Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . 146
4.6 - Optimization of Constructed Functions . . . . . . . . . . . . . . . . . . . . . . . . . 153

3
Representations of Change Functions: Four Representations

Chapter 1

Ingredients of Change: Functions &

Limits

Functions: Four Representations

Representations of Change
In mathematics, particularly applied mathematics, we need to be able to interpret real-world phe-
nomena in four ways: numerically, algebraically, verbally, and graphically.

Example 1.1.1. The price of gas at a certain 7-11 in Norman was $4.39 per gallon on June 26th.
Represent this data in four ways.

(1) Numerically: We can numerically represent the data by placing values in a table.

Gasoline Pumped (in gallons) 0 1 5 10 15 20

Price (in USD) 0 4.39 21.95 43.90 65.85 87.80

(2) Algebraically: Since we are paying $4.39 for every gallon, it is reasonable to express the situation
by the function p(g) = 4.39g dollars per gallon, with g gallons pumped.

(3) Verbally: The problem is given to us verbally, but using we’ll rephrase it to sound more like
what we would expect in this class. The price at the pump for gasoline is $2.39 per gallon of
gasoline pumped.

(4) Graphically: We may use a graph to display this same information. Since we created the
function p(g) = 4.39g, we can plot this in order to create a graphical representation of the data.

Chapter 1.1 1
Functions: Four Representations Functions & Representations

80

60

p(g) dollars
40

20

0
0 5 10 15 20
g gallons

The process of using information like this to generate something usable is called mathematical
modeling, and we call the result a model. Business Calculus courses place heavy emphasis on
developing and deploying models.

Functions & Representations

A relation is a rule which links an input variable to an output; given one piece of information,
we can determine the corresponding piece. A special type of relation is one called a function.

Definition 1.1.2 (Function)

A function is a rule that assigns a single output per input value. For a given output function
f , and given input value x, this is notated f (x).

it is very important that you understand this notation. One of the most common
mistakes in 1743 and 2123 is a misunderstanding of how function notation works. The letters
chosen (f, g, h, k, g, A, etc.) indicate the name of the function, and the numbers/variables inside
the parentheses indicate what the function is being applied to. A way to remember this is to read
the expression f (x) as “f of x”.

2 Chapter 1.1
Functions & Representations Functions: Four Representations

Example 1.1.3. Let g be a function. Write the correct notation for the following situations:
(a) g applied to the number 5

(b) g applied to the number 10

(c) g applied to the variable x

(d) g applied to the variable y

(e) g applied to the expression x + 1

(f) g applied to the expression 10 − y

(g) g applied to the expression x + h

Chapter 1.1 3
Functions: Four Representations Functions & Representations

Example 1.1.4. Evaluate the function f (x) = 3x − 2 at the inputs:

(a) x = 2

(b) x = 3

(c) x = −4

(d) x = k

(e) x = k + 7

(f) x = 3k + 21

We may also represent functions using an input/output diagram. One is given below, for the
previous example:

input x=5

f (x) = 3x − 2

output
f (5) = 13

4 Chapter 1.1
Functions & Representations Functions: Four Representations

Every function is a relation, but not every relation is a function. If a relation gives more than one
output value for even a single input value, then it cannot be a function. This can be determined
using a verbal, numerical, or graphical description of the data.

Example 1.1.5. Let C(t) represent the number courses offered campus-wide during the week at
time t, and O(t) represent the number of students walking on the South Oval at time t last Monday.
Is C a function? What about O?

Example 1.1.6. Below are numerical expressions for the functions h and k. Is h a function?
What about k?
x 0 1 1 2 5 6 t 0 1 1 2 5 6
h(x) 0 1 2 3 4 5 k(t) 0 1 1 3 4 5

Example 1.1.7. Are both of these graphs functions? Why or why not?
y y
4
1 2

x
−4 −2 2 4
−2
x
1 2 3 4 5 6
−4
−6
−1
−8

Chapter 1.1 5
Functions: Four Representations Model Output and Units of Measure

Model Output and Units of Measure

In real-world applications, the proper units of measure must be attached to a model and every
result derived from that model; in this way, we can gain meaningful information from whatever is
it we do. The verbal description of a function gives us the units of measure. In our first example,
our input unit is gallons, and our output unit is dollars.

Example 1.1.8. The population of Canada between 1900 and 2010 is given by the model

p(t) = 3(1.03t ) million people

where t is the number of years since the end of 1900.

(a) When did the population reach 155 million people? Write a sentence interpreting the result.

(b) Determine the population in the year 1990. Write a sentence interpreting the result.

(c) Give a description and the unit of measure for both the input and output variables.

(d) Draw an input/output diagram for p, and a graph of p.

6 Chapter 1.1
Model Output and Units of Measure Functions: Four Representations

Example 1.1.9. Calculate the output value that corresponds to the inputs t = 4.5 and t = −2
3
for the function m(t) = t + 2.
8

Example 1.1.10. Calculate the output value that corresponds to the inputs x = 10 and x = −3
for the function f (x) = 7x2 − 2x − 3.

Example 1.1.11. Let f (x) = 2.5 ln x + 3.

(a) Does the expression f (x) = 7 ask to find an input or output?

(b) Solve (a).

Chapter 1.1 7
Functions: Four Representations Model Output and Units of Measure

Example 1.1.12. Let f (x) = 6.1x + 3.1x .

(a) Does the expression x = 2.5 ask to find an input or output?

(b) Solve (a).

27.4
Example 1.1.13. Let u(t) = .
1 + 13e2t
(a) Does the expression u(t) = 15 ask to find an input or output?

(b) Solve (a).

Example 1.1.14. The number of donors to the American Red Cross Disaster Relief Fund who
donated more than x million dollars during 2005 is represented as d(x).
(a) Write a sentence of interpretation for d(5) = 2.

(b) Write the function notation for the statement: “Seventy-five groups donated at least $500,000
to the Disaster Relief Fund in 2005.”

Example 1.1.15. The average number of people standing in the Chick-Fil-A line on Wednesdays
can be represented by p(t), where t is the number of hours after 12:00pm.
(a) Write a sentence of interpretation for the expression p(0) = 32

(b) Write the function notation for the statement “At 1:15pm, there are an average of 15 people in
line at Chick-Fil-A”.

8 Chapter 1.1
Descriptions of Function Behavior Function Behavior and End Behavior Limits

Function Behavior and End Behavior Limits

Descriptions of Function Behavior
Especially as we consider longer-term models, we are concerned about what happens to a function
as time advances.

Definition 1.2.1 (Increasing, Decreasing, Constant)

Let f be a function defined over some input interval. The function is said to be

ˆ increasing if the output values

ˆ decreasing if the output values

ˆ constant if the output values

Example 1.2.2. On what intervals is g(x) = −x3 + 16x − 5 increasing, decreasing, or constant?
Use the calculator to help you find the answer.

Example 1.2.3. Is the function given in the table below increasing, decreasing, or constant?
Why?
x 2 4 6 8 10
h(x) 5 6 8 12 20

Example 1.2.4. The function f (x) = c is constant. Look at the graph and/or table and explain
why.

Chapter 1.2 9
Function Behavior and End Behavior Limits Direction and Curvature

Direction and Curvature

Definition 1.2.5 (Concavity)

A function f defined over an input interval is said to be

ˆ concave up if a graph of the function appears to be

ˆ concave down if a graph of the function appears to be

The curvature of a function is called .

Example 1.2.6. Describe the concavity of k(t) = −t2 + 8t − 13. Does it appear to ever change?
If so, where? Draw a picture.

Example 1.2.7. Describe the concavity of the function f (z) = ln z. Does it ever appear to
change? If so, where? Draw a picture.

Example 1.2.8. Describe the concavity of the function g(x) = −2x. Draw a picture.

10 Chapter 1.2
Direction and Curvature Function Behavior and End Behavior Limits

Example 1.2.9. Describe the concavity of h(d) = d3 − 11d2 + 38d − 37. Does it ever appear to
change? Draw a picture.

Definition 1.2.10 (Inflection Point)

A point on a continuous function where the concavity of the function changes is called an
inflection point.

Example 1.2.11. The function P (t) = 2t3 − 10t2 − 3t + 275 describes the profit (in hundred
dollars) made by a small business after a rash of bad Yelp reviews where t is the number of weeks
since the reviews were put online. Let 0 ≤ t ≤ 5.
(a) Sketch a picture of the graph.

(b) Estimate the input and output values at the inflection point(s).

(c) Identify the intervals where P is increasing, decreasing, and constant.

Chapter 1.2 11
Function Behavior and End Behavior Limits Limits and End Behavior

(d) Identify the intervals where P is concave up, concave down, or neither.

(e) Use the information from (a)-(c) to describe what was happening to the profit made by the
business between the first and sixth week.

Limits and End Behavior

Definition 1.2.12 (End Behavior)

The end behavior of a function refers to the behavior of the output values of the function as
the input values become larger and larger, or smaller and smaller.

As the input values become larger and larger (more and more positive), we say that the input

. As they become smaller and smaller (more and

more negative), the input .

Example 1.2.13. Consider h(d) = d3 − 11d2 + 38d − 37.

(a) Sketch the function on the interval [0, 6].

12 Chapter 1.2
Limits and End Behavior Function Behavior and End Behavior Limits

(b) In a sentence, describe the end behavior of h as the input increases without bound.

(c) In a sentence, describe the end behavior of h as the input decreases without bound.

There are three possibilities when we consider the end behavior of a function:

ˆ The output values may

ˆ The output values may

ˆ The output values may

Example 1.2.14. Draw three functions that have will have each of these three end behaviors.

Chapter 1.2 13
Function Behavior and End Behavior Limits Limits and End Behavior

2x
Example 1.2.15. Determine the end behavior/limit of the function f (x) = as the in-
x−1
put increases without bound, using numerical estimation. Record your approximations with full
decimal accuracy, and round the final answer to the hundredths.

2x
x f (x) =
x−1

10

100

1000

10000

100000

End Behavior/
Limit

Note

When creating a table, you need to stop when the digit after the one you’re rounding to
repeats twice.

Definition 1.2.16 (Limit)

A function f (x) is said to have a limit L if the of f approaches

as the approaches some (possibly infinite) value a. We write this using

the following notation:

14 Chapter 1.2
Limits and End Behavior Function Behavior and End Behavior Limits

Example 1.2.17. Rewrite the end behavior/limit from the previous example using limit notation.

Definition 1.2.18 (Horizontal Asymptote)

A horizontal line with the equation is called a horizontal asymptote.

Example 1.2.19. Let f (x) = x2 and g(x) = x3 .

(a) Write the statement “The limit of f (x) as x approaches ∞ is ∞” in limit notation.

(b) Find lim f (x), and write the notation in words (like in (a))
x→−∞

(c) Find the end behaviors of g(x), and write them in limit notation.

Chapter 1.2 15
Function Behavior and End Behavior Limits Limits and End Behavior

Example 1.2.20. Sketch the following functions, and use the sketches to find the limit as the
input increases without bound and decreases without bound:
(a) f (x) = ln x

(b) g(x) = ex

1
(c) h(x) =
1 + ex

16 Chapter 1.2
Limits and End Behavior Function Behavior and End Behavior Limits

Example 1.2.21. Use numerical estimation to find lim (1 − 0.6x ). Make a table showing at least
x→∞
five inputs and the corresponding outputs; write all decimals in the table, and round your final
answer to two decimal places. Start your input at 2 and double.

1 + t−2 . Make a table showing at

Example 1.2.22. Use numerical estimation to find lim
t→−∞
least five inputs, and the corresponding outputs; write all decimals in the table, and round your
final answer to the nearest integer. Start your input at −10 and double.

Chapter 1.2 17
Functions with Unbounded Input Left/Right Hand Limits

Functions with Unbounded Input

Motivating Example
1
Consider the function f (x) = , graphed below:
x−2
f (x)

4
3
2
1
x
−6 −4 −2
−1 2 4 6 8
−2
−3

(a) What happens to the output of f as the input increases without bound? Write your answer in
limit notation.

(b) What happens to the output of f as the input decreases without bound? Write your answer in
limit notation.

(c) What happens to the output of f at x = 2?

18 Chapter 1.3
Left/Right Hand Limits Functions with Unbounded Input

Left/Right Hand Limits

Definition 1.3.1 (Left/Right Hand Limit)

Let f be a function defined on an interval containing some constant c (except possibly at c

itself).
ˆ If f (x) approaches the value of L1 as x approaches c from the left, then the left-hand limit
of f is L1 , and is written

ˆ If f (x) approaches the value of L2 as x approaches c from the right, then the right-hand
limit of f is L2 , and is written

1
Example 1.3.2. For f (x) = , find lim− f (x) and lim+ f (x).
x−2 x→2 x→2

Example 1.3.3.
1
Use a calculator to numerically examine the limit behavior of f (x) = at x = 2.
x−2

x f (x) x f (x)

1.9 2.1

1.99 2.01

1.999 2.001 lim f (x) =

x→2

1.9999 2.0001

1.99999 2.00001

lim f (x) = lim f (x) =

x→2− x→2+

Chapter 1.3 19
Functions with Unbounded Input Left/Right Hand Limits

Example 1.3.4. Use the graph of g to answer the following:

f (x) (a) lim− g(x) = (d) lim− g(x) =
x→4 x→3
10
9
8
7 (b) lim+ g(x) = (e) lim+ g(x) =
6 x→4 x→3
5
4
3
2 (c) lim g(x) = (f) lim g(x) =
1 x→4 x→3
x
1 2 3 4 5

3t2 − 9
Example 1.3.5. Examine the limit behavior of the function g(t) = at t = 3. Round to
t−3
the nearest tenth if necessary.

20 Chapter 1.3
Left/Right Hand Limits Functions with Unbounded Input
p2 − 64
Example 1.3.6. Use a calculator to examine the limit behavior of the function r(p) =
p+8
at p = −8. Round to the nearest thousandth if necessary.

3y
Example 1.3.7. Use a calculator to examine the limit behavior of the function P (y) =
2y − 5
at y = 2.5. Round your answer to 2 decimal places.

Chapter 1.3 21
Functions with Unbounded Input Continuity

Continuity

Definition 1.3.8 (Continuity)

A function f (x), defined on some input interval containing c, is said to be continuous at c if

and only if the following conditions are satisfied:
(1)

(2)

(3)

A function is continuous on any open interval (a, b) if it is continuous at every point inside the
interval. If a function is not continuous at the input x = c, then we say that f is

at c.

1
Example 1.3.9. Identify any points of discontinuity in the function f (x) = . Explain why
x−2
the function is discontinuous at those points.

Example 1.3.10. Identify any points of discontinuity in the function g(x) in Example 3.4.
Explain why the function is discontinuous at those points.

22 Chapter 1.3
Continuity Functions with Unbounded Input

Example 1.3.11. Use the graph to find the following:

f (x)

x
−4 −3 −2 −1 1 2 3 4
−1

−2

−3

−4

(a) lim+ f (x) (e) lim+ f (x) (i) lim+ f (x)

x→1 x→3 x→0

(b) lim− f (x) (f) lim− f (x) (j) lim− f (x)

x→1 x→3 x→0

(c) lim f (x) (g) lim f (x) (k) lim f (x)

x→1 x→3 x→0

(d) Is f continuous at x = 1? (h) Is f continuous at x = 3? (l) Is f continuous at x = 0?

Chapter 1.3 23
Functions with Unbounded Input Properties of Limits

Properties of Limits
Let f (x) and g(x) be continuous functions over some input interval containing c, and k be some
arbitrary constant. Then, we have the following properties of limits:
(1) Constant Rule:

(2) Sum Rule:

(3) Constant Multiple Rule:

(4) Replacement Rule: If f (c) is defined at c, then

(5) Product Rule:

(6) Quotient Rule:

(7) If f (x) can be factored as f (x) = h(x) · k(x), and g(x) can also be factored as g(x) = j(x) · k(x),
then
f (x) h(x) · k(x) h(x)
lim = lim = lim
x→c g(x) x→c j(x) · k(x) x→c j(x)

i.e. common factors may be canceled across fractions under the limit

24 Chapter 1.3
Properties of Limits Functions with Unbounded Input

Example 1.3.12. Algebraically determine the limits of the following:

(a) lim 9
x→5

(b) lim(4z − 5)
z→3

t2 − 4t − 21
(c) lim
t→−3 t+3

m
(d) lim
m→13 m2 + 4m

(3 + h)2 − 9
(e) lim
h→0 h

(5 + h)2 − 25
Example 1.3.13. Determine the limit: lim
h→0 h

Chapter 1.3 25
Functions with Unbounded Input Properties of Limits
(
x2 x < −1
Example 1.3.14. Let f (x) = . Algebraically determine the following limits and
1 x ≥ −1
answer the questions:
(a) lim f (x)
x→−1−

(b) lim f (x)

x→−1+

(c) f (−1)

(d) Is f continuous at x = −1? Why?

(e) Graph f (x). Do your answers make sense?

26 Chapter 1.3
Properties of Limits Functions with Unbounded Input
(
3t − 9 t < 2
Example 1.3.15. Let h(t) = 2 . Algebraically determine the following limits and
t −4 t≥2
answer the questions:
(a) lim− h(t)
t→2

(b) lim+ h(t)

t→2

(c) h(2)

(d) Is h continuous at t = 2? Why?

(e) Graph h(t). Do your answers make sense?

Chapter 1.3 27
Linear Functions & Models Linear Models

Linear Functions & Models

Linear Functions
Remember that a linear function requires two pieces of information- a starting value (b, the y-
intercept), and an amount of incremental change in the independent variable (m, the slope of the
function). This gives us three ways to describe a linear function:

ˆ Verbally:

ˆ Graphically:

ˆ Algebraically:

Question 1.4.1 Given two points (x1 , y1 ) and (x2 , y2 ), how can we find the slope of the line
between them?

Linear Models
For our general model, f (x) = ax + b, we have the following characteristics:

a>0 a<0
y ˆ lim f (x) = y ˆ lim f (x) =
x→∞ x→∞
ˆ lim f (x) = ˆ lim f (x) =
x→−∞ x→−∞
f (x) ˆ f is always f (x) ˆ f is always
x ˆ f has no concavity x ˆ f has no concavity

a=0 a undefined
y ˆ lim f (x) = y ˆ lim f (x) =
x→∞ x→∞
ˆ lim f (x) = ˆ lim f (x) =
y=b x→−∞ x→−∞
ˆ f is always x=b ˆ Neither inc. nor dec.
x ˆ f has no concavity x ˆ No concavity

For any given graph, the scales will change; use algebra, don’t trust your eyes.

28 Chapter 1.4
Elements of a Model Linear Functions & Models

Elements of a Model
From now on, when we refer to a model, we are referring to a specific collection of information.
These pieces are listed below; memorize them!

(1) Proper and consistent function notation

(2) Model coefficients rounded to three decimal places
(3) Output units
(4) Output description
(5) Input units
(6) Input description

Example 1.4.2. The following table gives the percentage of new companies which remained open
t years after beginning business.
Years After Opening 5 6 7 8 9 10
Companies Still Open (in %) 50 47 44 41 38 35
(a) Fill in the new inputs if we align the data so that the fifth year corresponds to an input of zero.

Years After Opening

Companies Still Open (in %) 50 47 44 41 38 35

(b) Use the aligned data to create a complete model.

Chapter 1.4 29
Linear Functions & Models Elements of a Model

Definition 1.4.3 (Extrapolation)

When using a model, we say that data is extrapolated if we find an output value

Definition 1.4.4 (Interpolation)

When using a model, we say that data is interpolated if we find an output value

Example 1.4.5. In the example above, predict the number of companies open in the twelfth year
of operation. Is this extrapolation or interpolation?

Example 1.4.6. Do the same, but after 8.5 years after opening. Is this extrapolation or
interpolation?

Example 1.4.7. The amount of electricity sold by a power company in year x is given below.
Year 2003 2004 2005 2006 2007 2008
Retail Sales (in quadrillion kWh) 1.2 1.23 1.27 1.3 1.33 1.35
(a) Find a complete linear model to fit the data.

(b) Write an interpretation the slope of the linear model.

(c) When did retail sales first exceed 1.4 quadrillion kWh? Is this interpolation or extrapolation?

30 Chapter 1.4
Numerical Considerations Linear Functions & Models

Data Alignment
When using an input value of years, alignment should (usually) happen so that the first year given
corresponds to an input of zero.

Example 1.4.8. Find the complete linear model to fit the data of the previous example, aligning
the input so that the year 2003 corresponds to an input of zero.

Numerical Considerations
Since numerical approximations can vary, we will use the following guidelines:
(1) Use common sense; if a model outputs something like “2.5 people”, we would round to 3 people.
(2) The accuracy of the output must be the same as the original model’s accuracy.
(3) All answers must have proper units; answers without labels are useless.
(4) If arriving at your answer requires multiple steps, do not round until the final answer.

Example 1.4.9. The world’s daily demand of oil was recorded in various years, and is listed
below.
Year 2004 2005 2006 2007 2008 2009
Oil Demand (in million barrels) 82.327 83.652 84.622 85.385 86.384 87.698
(a) Based on the scatterplot, why is a linear model best?

(b) Align the data so that the year 2000 corresponds to an input of 0, and find the complete linear
model.

(c) Estimate the demand in the year 2015.

Chapter 1.4 31
Linear Functions & Models Numerical Considerations

Example 1.4.10. Expenditure on pets in the United States was recorded over the span of several
years, and is recorded in the table below.
Year 1994 1996 1998 2001 2002 2003 2004 2005 2006 2007 2008
Expenditure 17 21 23 28.5 29.5 32.4 34.4 36.3 38.5 41.2 43.4
(billion USD)
(a) Align the data so that the year 1994 corresponds to an input of zero, and find the complete
linear model.

(b) Use the model to estimate the expenditure in the year 2013.

Example 1.4.11. The number of successful tax audits performed by a company between 2000
and 2006 can be modeled by A(t) = −83.9t + 1063 audits, where t is the number of years since
2000.
(a) Give the rate of change of A. Include units.

(b) Evaluate A(0). Write a sentence interpreting your answer.

(c) Find the number of successful audits in 2005. Is this interpolation or extrapolation?

(d) Find the number of successful audits in 2010. is this interpolation or extrapolation?

32 Chapter 1.4
Numerical Considerations Linear Functions & Models

Example 1.4.12. The population of a town in selected years is given below.

Year 2005 2006 2007 2008 2009 2010
Population (in thousands) 125.2 128.7 132.4 136.0 139.8 143.6
(a) Find a complete model for the population P of the town in year y.

(b) According to your model, what is the constant rate of change of the population of the town?

(c) Use your model to predict the population of the town in 2015.

Example 1.4.13. Honda engineers are designing a new car, and are measuring the distance it
takes the car to come to a complete stop on dry pavement. Their measurements are given below.
Speed (mph) 55 60 65 70 75
Distance (ft) 77.6 131.4 186.3 236.7 289.3
(a) Find a complete model for the braking distance of the car.

(b) Use your model to find the braking distance needed when the car is traveling at 77 miles per
hour; write your answer using function notation.

(c) Find another complete model, aligning the data so that a speed of 50 mph corresponds to an
input of 0.

(d) Repeat part (b).

(e) How fast is the car traveling if it requires 156 ft to come to a complete stop?

Chapter 1.4 33
Exponential Functions & Models Exponential Models

Exponential Functions & Models

Exponential Functions
As with the linear model, we have three descriptions of an exponential model:

ˆ Algebraic: An exponential model has an equation of the form

The percentage change over one unit input is , and is the

initial value, the output corresponding to an input of zero.

ˆ Verbally: An exponential model has

.
ˆ Graphically: An exponential model will look like the pictures below.

Exponential Models
For exponential models, we have the following information:

a > 0, b > 1 a < 0, b > 1

y
ˆ lim f (x) = ˆ lim f (x) =
x→∞ x x→∞
ˆ lim f (x) = ˆ lim f (x) =
x→−∞ f (x) x→−∞
ˆ f is always ˆ f is always
f (x) ˆ f is concave ˆ f is concave
x
y

a > 0, 0 < b < 1 a < 0, 0 < b < 1

y
ˆ lim f (x) = ˆ lim f (x) =
x→∞ x x→∞
ˆ lim f (x) = ˆ lim f (x) =
x→−∞ f (x) x→−∞
ˆ f is always ˆ f is always
f (x) ˆ f is concave ˆ f is concave
x
y

For us, an exponential model will always have an asymptote at .

34 Chapter 1.5
Formulas and Examples Exponential Functions & Models

Formulas and Examples

There are two formulas which will be useful to memorize. For exponential models, we have a
constant percent change; this is given above as

Percent Change (Exponential)

For every other model, we calculate the percent change between two input values x1 , x2 as

Percent Change (Other Models)

Example 1.5.1. iPod sales were 7.68 million units in 2006, and increased by 9.1% each year
between 2006 and 2008.
(a) Write an exponential model for this situation.

(b) Explain why the exponential model is best.

(c) Use the model to predict the number of iPods sold in 2010.

Chapter 1.5 35
Exponential Functions & Models Formulas and Examples

Example 1.5.2. The population of Northern cod in a certain body of water is given in the table
below.
Decade (since 1963) 0 1 2 3 4
Population (in billions) 1.72 0.63 0.24 0.085 0.032
(a) Identify which model (linear/exponential) is best for this data.

(b) Find the complete model.

(c) Find the percent change of the model.

Example 1.5.3. Early in the millennium, it was predicted that United States imports of petroleum
products would be 4.81 quadrillion Btu, and increase by 5.47% each year through 2020.
(a) Find the associated exponential model.

(b) When will imports exceed 10 quadrillion Btu?

(c) Describe the end behavior of your model.

36 Chapter 1.5
Formulas and Examples Exponential Functions & Models

Example 1.5.4. According to the Social Security Advisory Board, the number of workers per
beneficiary of the Social Security program was 3.3 in 1995 and is projected to decline by 1.46% each
year until 2030.
(a) Write a model for the number of workers per beneficiary from 1995 through 2030.

(b) What does the model predict the number of workers per beneficiary will be in 2030?

Example 1.5.5. A social media website collected data on its users. Below are the users of a
certain age and gender, as a percentage of total users.
Age (years) 27 29 31 33 35 37 39 41 43 45
Females (as %) 9.6 7.8 6.1 5.1 4.3 3.8 2.4 2.1 1.2 1.1
Males (as %) 8.8 7.6 6.0 4.6 4.0 4.4 2.7 1.9 1.5 1.3
(a) Align the input data to the number of years after 27. Write an exponential model for the female
user data.

(b) According to the model in part (a), what is the percentage change in your model? Write a
sentence interpreting your answer.

Chapter 1.5 37
Exponential Functions & Models Formulas and Examples

(c) What percentage of female users are 30 years old? What about 48 years old? Are these
interpolation or extrapolation?

(d) Write the exponential model for the male user data.

(e) According to your model in part (d), what is the percentage change in your model? Write a
sentence interpreting your answer.

(f) What percentage of male users are 30 years old? What about 48 years old?

38 Chapter 1.5
Doubling Time and Half Life Exponential Functions & Models

Doubling Time and Half Life

Definition 1.5.6 (Doubling Time)

For an exponential function f , the doubling time is defined to be the amount of time it takes
an initial quantity to double (or grow by 100%).

Definition 1.5.7 (Half Life)

For an exponential function f , the half life is defined to be the amount of time it takes an
initial quantity to decay to half of its original size (or decrease by 50%).

Example 1.5.8. Albuterol is used to calm bronchospasm. It has a biological half-life of 7 hours
and is normally inhaled as a 1.25 mg dose.
(a) Find a model for the amount of albuterol left in the body after an initial dose 1.25 mg.

(b) How much albuterol is left in the body after 24 hours?

Chapter 1.5 39
Exponential Functions & Models Doubling Time and Half Life

Example 1.5.9. The amount of money Frank has in a particular investment is given by f (t) =
P e.06t , where P is the principal invested and t is the amount of time (in years) the investment has
been active.
(a) If Frank began the investment 15 years ago, and currently has $25,500 in the account, what
was the principal that he invested?

(b) If Frank currently has $14,250 in the account and invested $2,500 to start, how long as the
investment been active?

(c) Compute the doubling time for an investment of $1000.

(d) How long will it take an investment to triple instead of double?

40 Chapter 1.5
Simple Interest Models in Finance

Models in Finance

Definition 1.6.1 (Future Value/Present Value)

The future value of an investment/loan at time t is the sum of the prevent value and all
accumulated interest; this is denoted F or F V . The present value, denoted F (0) = P
(principal) is the value “today”, or at t = 0.

Simple Interest

Definition 1.6.2 (Simple Interest)

Simple interest is interest earned on the rate (as a decimal) is

called the , or nominal rate.

We have two formulas for simple interest:

I(t) = P rt dollars

Fs (t) = P (1 + rt) dollars

where P is the , r is the , and t is the

Example 1.6.3. A family friend offers to loan you $10,000 to cover your outlandishly high tuition
this year. She wants to earn 5.75% interest on the loan.
(a) If you pay the loan back in 1 year, how much interest does the friend make?

(b) What about if you pay the loan back in 3 years?

(c) What about 4 months?

Chapter 1.6 41
Models in Finance Discretely Compounding Interest

Example 1.6.4. I invest $500 at 8.5%. How much is the investment worth in 5 years?

Discretely Compounding Interest

Definition 1.6.5 (Discretely Compounding Interest)

Discretely compounding interest is interest earned on the balance at discrete time inter-
vals.

We have two formulas for discretely compounding interest:

r
I =
n
 r nt
Fd (t) = P 1 + dollars
n
where P is the , r is the , t is the

, and n is the .

Example 1.6.6. You take out a $16, 750 loan for a new car. Find the value of the loan (assuming
no payments were made) with:
(a) r = 12.5%, monthly

(b) r = 6.2%, n = 12

(c) r = 12.5%, yearly

(d) r = 3.79%, quarterly

42 Chapter 1.6
Discretely Compounding Interest Models in Finance

(e) r = 3.79%, n = 6

(f) r = 7.2%, daily

Definition 1.6.7 (Annual Percentage Yield)

The annual percentage yield of an investment (also called the )

gives the return on investment in one year. APY for discretely compounding interest is calcu-
lated with the formula h r n i
AP YD = 1 + − 1 · 100%
n

Example 1.6.8. Calculate the APY for each of the situations from the last example. Round each
to the nearest tenth:
(a) r = 12.5%, monthly

(b) r = 6.2%, n = 12

(c) r = 12.5%, yearly

Chapter 1.6 43
Models in Finance Continuously Compounding Interest

(d) r = 3.79%, quarterly

(e) r = 3.79%, n = 6

(f) r = 7.2%, daily

Example 1.6.9. OU Federal Credit Union offers an APR of 6.35% (compounded monthly) for an
investment opportunity, while First Fidelity offers you an APY of 5.95%. Which option will give
the highest return after one year?

Continuously Compounding Interest

Definition 1.6.10 (Continuously Compounding Interest)

Interest earned on the balance at any given time t is called continuously compounding
interest, and has the future value formula given by

Fc (t) = P ert dollars

where P is the principal, r is the rate, and t is the time.

44 Chapter 1.6
Continuously Compounding Interest Models in Finance

We also have a formula for the APY of continuously compounding interest:

AP YC = (er − 1) · 100%

Example 1.6.11. Determine the amount that must be invested in the following situations to get
$7000 payable in 4 years:
(a) 3% APR, compounded continuously

(b) 3.9% APR, compounded monthly

(c) 15.1% APR, simple interest

(d) 10% APR, compounded weekly.

Chapter 1.6 45
Models in Finance Continuously Compounding Interest

Example 1.6.12. Find the APY for the examples above, rounding to the nearest hundredth.
(a) 3% APR, compounded continuously

(b) 3.9% APR, compounded monthly

(c) 15.1% APR, simple interest

(d) 10% APR, compounded weekly.

46 Chapter 1.6
Function Operations Constructed Functions

Constructed Functions
Definitions

Definition 1.7.1 (Fixed Cost)

A fixed cost is a cost which remains the same, no matter how much of a product is produced.

Definition 1.7.2 (Variable Cost)

A variable cost is a cost which changes depending on the number of units produced.

Definition 1.7.3 (Total Cost)

The total cost is the sum of the fixed cost and variable cost.

Definition 1.7.4 (Revenue)

Revenue is the

Definition 1.7.5 (Profit)

Profit is .

Definition 1.7.6 (Break-Even Point)

The break-even point is the point when

Chapter 1.7 47
Constructed Functions Examples

Function Operations
There are five operations which we will need to be familiar with in order to move on.

ˆ Addition: , if the output units of f and g are

ˆ Subtraction: , if the output units of f and g are

ˆ Multiplication: , if the output units of f and g are

ˆ Division: , if the output units of f and g are

ˆ Composition: , if

Addition creates total cost from fixed and variable costs by adding the two; profit is created using
subtraction. Variable cost (and revenue) are created by multiplication, and division gives us average
cost C.

Examples
Example 1.7.7. The number of student tickets sold for a home basketball game at OU is
represented by S(w) hundred tickets when w is the winning percentage of the team. The number
of non student tickets sold for the same game is represented by N (w) hundred tickets where w is
the winning percentage of the team. Combine the functions to construct a new function giving the
total number of tickets sold for a home basketball game at OU.

48 Chapter 1.7
Examples Constructed Functions

Example 1.7.8. Sales of 12-ounce bottles of sparkling water are modeled as D(x) = 287.411(0.266x )
million bottles, when the price is x dollars per bottle. Write a model for the revenue from the sale
of 12-ounce bottles of sparkling water.

Example 1.7.9. The profit from the supply of a certain commodity is modeled as P (q) =
30 + 60 ln q thousand dollars, where q is the number of units produced in millions. Write a model
for the average profit when q units are produced.

Chapter 1.7 49
Constructed Functions Examples

Example 1.7.10. A travel agency offers spring break cruise packages. The agency advertises
a cruise to Cancun for $1200 per person. To promote the cruise among student organizations
on campus, the agency offers a discount for student groups selling the cruise to over 50 of their
members. The price per student will be discounted by $10 for each student in excess of 50 (for
example, if an organization had 55 members go on the cruise, each of those students would pay
$1150). Write a model for the travel agency’s revenue that depends on the number of students from
a student organization.

Example 1.7.11. The sales of a certain brand of backpack is modeled by f (s) = 1.56s + 4.3
million dollars, when s is the number of stores that sell the brand of backpack. The number of stores
that sell the brand of backpack is modeled by s(t) = 3t + 5.4 stores, t months since the beginning
of 2000. Write a model for the sales of a certain brand of backpack with respect to time.

50 Chapter 1.7
Examples Constructed Functions
√
Example 1.7.12. The level of contamination in groundsoil is f (p) = p parts per million
when the population of the surrounding community if p people. The population of the surrounding
community in year t is modeled as p(t) = 400t2 + 2500 people, t years since 2000.
(a) Why can we use function composition?

(b) Find a model for the contamination of the groundsoil.

Example 1.7.13. It costs a company $19.50 to produce 150 glass bottles. Write a model for
C(q), the average cost of producing a bottle when q units are produced.

Chapter 1.7 51
Constructed Functions Examples

Example 1.7.14. Write the following functions as composite functions, and then evaluate the
composite at an input of 2.
(a) f (t) = 3et , t(p) = 4p2

4
(b) h(p) = , p(t) = 1 + 3e−0.5t
p

√
(c) g(x) = 7x2 , x(w) = 4ew

(d) c(x) = 3x2 − 2x + 5, x(t) = 2et

52 Chapter 1.7
Logarithmic Behavior Logarithmic Functions & Models

Logarithmic Functions & Models

Logarithmic Functions
We have the following descriptions for a logarithmic function:
ˆ Algebraically: A logarithmic model has an equation of the form ,
where a, b ̸= 0 are constants, and x > 0.
ˆ Verbally: A log function has a at x = 0, and continues to grow (or
decay) as x increases without bound.
ˆ Graphically: The graph of a log model takes a form as below.

Logarithmic Models

b>0 b<0
y y
ˆ lim f (x) = ˆ lim f (x) =
x→∞ x→∞
f (x) ˆ lim+ f (x) = f (x) ˆ lim+ f (x) =
x→0 x→0
x ˆ f is always x ˆ f is always
ˆ f is concave ˆ f is concave

Logarithmic Behavior
Example 1.8.1. The percentage of viewers that have watched a DVR’d show before a certain
number of days have passed is give in the table below.
Time (in days) 1 2 3 4 5 6 7 8
Viewers (in %) 46 62 76 84 91 95 98 100
(a) Why is a logarithmic model best here? Use a scatterplot to help you develop your reasons.

(b) Find the model corresponding to your answer in part (a). Write the complete model.

(c) Explain why the exponential model does not work.

Chapter 1.8 53
Logarithmic Functions & Models Logarithmic Behavior

Example 1.8.2. The average length of the ears of men after a certain age is given in the table
below.
Age (in years) 0 20 70
Ear Length (in inches) 2.04 2.55 3.07
(a) Find the complete logarithmic model for the data. Do you encounter any problems?

(b) Align the data so that age 0 corresponds to an input of 10, and find the complete logarithmic
model for the data.

(c) Use the model to find the ear length of a 45 year old man.

Example 1.8.3. The table below shows the life expectancy for women in Ireland between 1945
and 2011
Year 1945 1955 1965 1975 1985 1995 2005 2011
Expectancy (years) 65.2 71.1 73.1 74.7 77.4 78.8 79.3 80.2
(a) Align the data so that 1940 corresponds to an input of zero.
(b) What type of concavity does the scatter plot suggest?

(c) Describe the end behavior suggested by the scatterplot as the input increases without bound.

54 Chapter 1.8
Logarithmic Behavior Logarithmic Functions & Models

(d) Find the complete logarithmic model for the data.

(e) Using your model, find the year in which the life expectancy for Irish women was exactly 76.3
years.

(f) What was the life expectancy of an Irish woman in the year 1979?

Chapter 1.8 55
Quadratic Functions & Models Choosing Models

Quadratic Functions & Models

Quadratic Models
The model is given by f (x) = ax2 + bx + c, where a, b, c are constants (a ̸= 0). The function has an
absolute maximum if a < 0, and absolute minimum if a > 0.

a>0 a<0
ˆ lim f (x) =
y ˆ lim f (x) = y x→∞
x→∞
ˆ lim f (x) =
f (x) ˆ lim f (x) = f (x) x→−∞
x→−∞ x ˆ f is increasing then de-
ˆ f is decreasing then in-
creasing
x creasing
ˆ f is concave up then
ˆ f is concave up
down

Choosing Models
At this point, we have five models to choose from when analyzing a data set. The process of choosing
a model should go as follows:
ˆ Does the scatterplot show any sort of concavity? If yes, then go to the next step. If not, try
a linear model.
ˆ If the scatterplot shows concavity, does it appear to change concavity? If yes, then the model
could be logistic or cubic. If not, then the model could be exponential, logarithmic, or
quadratic.
1. If the scatterplot changes concavity, then does it have an asymptote? If yes, then the
model is logistic. If no, then the model is cubic.
2. If the scatterplot does not change concavity, then look at the end behavior and for
asymptotes. If there is an asymptote at x = 0, then the model is logarithmic; if it is at
y = 0, then the model is exponential; if there is no asymptote, then it is quadratic.
ˆ If it is still difficult to determine between exponential and quadratic, then use the method of
second differences (described below). If second differences gives roughly constant values, then
the model is quadratic; if it does not, then, it is exponential.
ˆ If in doubt, one can develop multiple models and compare the fit of each model against the
data.
ˆ It is never a bad idea to apply common sense to models.

56 Chapter 1.9
Choosing Models Quadratic Functions & Models

Example 1.9.1. Draw a decision tree/diagram for choosing a model.

Example 1.9.2. The table below shows the profit (in millions of dollars) that American Airlines
makes on tickets between Dallas and Chicago when tickets are set at a certain price:
Ticket Price (dollars) 200 250 300 350 400 450
Profit (million dollars) 3.08 3.52 3.76 3.82 3.7 3.38
(a) Give two reasons why a quadratic model is more appropriate than a log or exponential model.

(b) Find a quadratic model for the data.

Chapter 1.9 57
Quadratic Functions & Models Choosing Models

(c) Why doesn’t the airline profit increase as the ticket price increases?

(d) At what price does the airline begin posting a loss?

Example 1.9.3. The table below gives the braking distance required for a vehicle to come to a
complete stop, given the initial velocity of the vehicle.
Speed (mph) 10 20 30 40 50 60 70 80 90
Distance (feet) 27 63 109 164 229 304 388 481 584
(a) Find the second differences of the data above.

(b) Find a quadratic model for stopping distance.

(c) What other factors besides the initial speed would impact the stopping distance?

(d) What speed is the vehicle moving if its braking distance is exactly 412 feet? Round your answer
to two decimal places, if needed.

58 Chapter 1.9
Choosing Models Quadratic Functions & Models

Example 1.9.4. The ratios of public school students to instructional computers with Internet
access for years between 1998 and 2004 are given below:
Year 1998 1999 2000 2001 2002 2003 2004
Ratio 9.1 6.1 3.6 2.4 1.8 1.4 1.8
(a) Align the input so that 1998 corresponds to an input of 0.
(b) Write the complete quadratic model for the data.

(c) Write the complete exponential model for the data.

(d) Which model best fits the data: (b) or (c)?

(e) Give two reasons why an exponential model might be best for this data.

Chapter 1.9 59
Logistic Functions & Models Logistic Models

Logistic Functions & Models

Logistic Functions
A logistic has the following descriptions:

ˆ Algebraically: A logistic model has an equation of the form where

a, b ̸= 0 are constants, and c > 0 is the .

ˆ Graphically: See below; logistics have two horizontal asymptotes at .

Logistic Models
For logistic models, we have the following information:

b>0 b<0
y ˆ lim f (x) = y ˆ lim f (x) =
y=c x→∞ x→∞
ˆ lim f (x) = y=c ˆ lim f (x) =
f (x) x→−∞ x→−∞
ˆ f is always f (x) ˆ f is always
y=0 y=0
ˆ f is ˆ f is

60 Chapter 1.10
Examples Logistic Functions & Models

Examples
Example 1.9.5. The number of NBA players taller than a given height are listed in the table
below.
Height (in inches) Number of Players Height (in inches) Number of Players
68” 490 80” 203
70” 487 82” 86
72” 467 84” 13
74” 423 86” 2
76” 367 88” 1
78” 293
(a) Using the scatterplot, explain why a logistic model is best for this data.

(b) Align the data so that 68” corresponds to an input of 0, and find the complete logistic model.

(c) Describe (using limit notation) the end behavior of the model as height increases.

Chapter 1.10 61
Logistic Functions & Models Examples

Example 1.9.6. The narrow band residential internet access, as a percentage of total residential
internet access, is given below.
Year Narrow Band Users (in %) Year Narrow Band Users (in %)
2000 89.4 2008 9.6
2001 80.7 2009 7.3
2002 70.9 2010 4.3
2003 58.3 2011 3.0
2004 45.9 2012 2.5
2005 35.3 2013 1.5
2006 21.5 2014 1.0
2007 12.2
(a) Based on the scatterplot, explain why a logistic model is best.

(b) Align the model so that 2000 corresponds to an input of 0. Find the complete logistic model
for the data.

(c) Write the equations for the two asymptotes.

(d) Estimate the location of the inflection point

62 Chapter 1.10
Examples Cubic Functions & Models

Cubic Functions & Models

Cubic Models
ˆ lim f (x) = ˆ lim f (x) =
x→∞ x→∞
a>0 ˆ lim f (x) = a<0 ˆ lim f (x) =
y x→−∞ y x→−∞
ˆ f is increasing, de- ˆ f is decreasing, in-
f (x) creasing, then increas- f (x) creasing, then decreas-
x x
ing ing
ˆ f is concave down then ˆ f is concave up then
up down

Examples
Example 1.10.1. A car company’s profit on SUV’s is given below.
SUV’s sold (in millions) 10 20 30 40 50 60 70
Profit (in trillion dollars) 0.9 3.1 4.3 5.2 5.8 6.4 6.9
(a) Use the scatterplot to determine the best model for the data. Give two reasons for your choice.

(b) Write the complete model.

(c) Find the profit when 37 million SUV’s are sold. Write a sentence of interpretation for your
answer.

Chapter 1.11 63
Cubic Functions & Models Examples

Example 1.10.2. A manufacturing company recorded the production of toys when a certain
amount of capital is invested in the production run.
Capital Invested (in million dollars) 6 18 24 30 42 48
Units Produced (in billions) 19 38 42 45 60 77
(a) Use the scatterplot to determine the best model for the data. Give two reasons for your choice.

(b) Write the complete model.

(c) Find the capital needed to produce 50 billion units. Write a sentence interpreting your answer.

64 Chapter 1.11
Formulas Measures of Change over an Interval

Chapter 2

Describing Change: Rates

Measures of Change over an Interval

Formulas
Let f be a function with input values x1 , x2 such that x1 < x2 .

Change

Percent Change

Average Rate of Change (AROC)

Chapter 2.1 65
Measures of Change over an Interval Examples

When giving interpretations, we have four considerations:

ˆ When is this event happening? Be sure to specify the interval.
ˆ What is happening? Specify the quantity which is changing.
ˆ How is it changing? Specify whether or not the quantity is increasing or decreasing.
ˆ By how much is it changing? Include proper units.

Example 2.1.1. If f denotes the number of students enrolled in Math 1743 and x is the number
of academic years after the 2000-2001 academic year, interpret the expression f (10) = 1552.

Examples
Example 2.1.2. The average temperature in Norman during the last week of September is given
in the table below:
Time Temperature (◦ F) Time Temperature (◦ F)
7am 49 1pm 80
8am 58 2pm 80
9am 66 3pm 78
10am 72 4pm 74
11am 76 5pm 69
noon 79 6pm 62
(a) Give the average rate of change in temperature between 11am and 4pm. Write a sentence
interpreting your result.

(b) Find the percent change in temperature between 9am and noon, and round your answer to the
nearest hundredth. Write a sentence interpreting your result.

66 Chapter 2.1
Examples Measures of Change over an Interval

Example 2.1.3. Airtran posted a revenue of $603.7 million dollars in the second quarter of
2009 compared with revenue of $693.4 million during the second quarter of 2008. Write a sentence
interpreting each of the following:
(a) Find the change in revenue between the second quarter of 2008 and the second quarter of 2009.

(b) Find the percent change between the second quarter of 2008 and second quarter end of 2009.

(c) Find the average rate of change between the second quarter of 2008 and the second quarter of
2009.

Chapter 2.1 67
Measures of Change over an Interval Examples

Example 2.1.4. The American Indian, Eskimo, and Aleut populations in the United States was
362 thousand in 1930, and 4.5 million in 2005. Write a sentence interpreting each of the following,
and round to two decimals if necessary:
(a) Find the change in population between 1930 and 2005.

(b) Find the percent change between between 1930 and 2005.

(c) Find the average rate of change between 1930 and 2005.

68 Chapter 2.1
Examples Measures of Change over an Interval

Example 2.1.5. OU Parking Services commissioned a projection of its profit (in thousands of
dollars) when commuter parking passes are set certain prices.
Price (dollars) 200 250 300 350 400 450
Profit (thousand dollars) 2080 2520 2760 2820 2700 2380
(a) Find a model for the data.

(b) Calculate the average rate of change of profit when the parking pass price rises from $200 to
$350.

(c) Calculate the average rate of change of profit when the parking pass price rises from $350 to
$450.

(d) Calculate the percent change for parts (b) and (c).

Chapter 2.1 69
Measures of Change over an Interval Examples

Example 2.1.6. The CDC modeled the number of Zika cases diagnosed in Brazil between January
and July of 2016 with the formula

z(t) = 2.75(1.04t ) thousand cases

where t is the number of months since January 2016.

(a) Calculate and write a sentence of interpretation for the average rate of change in the number
of Brazilians diagnosed with Zika between January 2016 and July 2016.

(b) Calculate the percentage change in part (a).

70 Chapter 2.1
Examples Measures of Change over an Interval

Example 2.1.7. The function c(t) represents the number of students in line at Chick-Fil-A, t
hours after 11:00am, and q(t) represents the number of students in line at Quizno’s, t hours after
11:00am. Write a sentence interpreting the following expressions.
(a) c(3) = 15

(b) q(1) = 8

(c) (c + q)(0) = 12

Chapter 2.1 71
Measures of Change at a Point - Graphical Average Change vs. Instantaneous Change

Measures of Change at a Point - Graphical

Tangent Lines and Secant Lines

Definition 2.2.1 (Secant Line)

Let f be continuous and smooth function on the some input interval [a, b]. Let x1 < x2 be two
points in [a, b]. The secant line through x1 and x2 is the line whose slope is

The characteristic of a secant line is that it “intentionally” goes through f in two points.
Question 2.2.2 The formula for the slope of a secant line should look familiar; what’s the other
name we used for this?

1
Example 2.2.3. Let f (x) = x2 . Find the secant line through x1 = − and x2 = 2, then sketch
2
f (x) and the secant line.

Average Change vs. Instantaneous Change

Secant lines are drawn between two points on a graph. As the distance between the points decreases,
we get values of the independent axis which are closer and closer together; we can use a limiting
process to find slope of the line through a single point. This is the called the tangent line to the
point.

Definition 2.2.4 (Rate of Change)

For smooth, continuous function f , the rate of change of the function at a particular point

x0 is given by ; the rate of change of f at point x0 is

denoted .

72 Chapter 2.2
Average Change vs. Instantaneous Change Measures of Change at a Point - Graphical

Definition 2.2.5 (Instantaneous ROC)

The instantaneous rate of change of a function f measures

1
Example 2.2.6. Estimate the slope of the tangent line to the curve f (x) = x2 at x = − by
2
drawing successive secant lines and computing the slope.

Example 2.2.7. For the curve below, use successive secant lines to estimate f ′ (0.4).

f (x)

1.8

1.6

1.4

1.2

0.8

0.6

0.4

0.2

x
−1.6 −1.4 −1.2 −1 −0.8 −0.6 −0.4 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8

−0.2

−0.4

Chapter 2.2 73
Measures of Change at a Point - Graphical Average Change vs. Instantaneous Change

Definition 2.2.8 (Percentage Rate of Change)

For smooth, continuous function f , if the rate of change f ′ (x0 ) exists for input value x0 and
f (x0 ) ̸= 0, then we define the percentage rate of change as

The output for percentage rate of change is .

Example 2.2.9. The rate of change of the student population at OU is 2000 students per year,
and the current body is 40,000 students. Find the percent rate of change of the student population.

Example 2.2.10. For the following, use the picture:

(a) At each labeled point, identify whether

the instantaneous rate of change is posi-
tive, negative, or zero.
(b) Is the graph steeper at point C or point
E?
(c) Is the graph steeper at point A or at
point C?

74 Chapter 2.2
Average Change vs. Instantaneous Change Measures of Change at a Point - Graphical

Example 2.2.11. The number of monthly Spotify listeners of an obscure shoegaze band is given
by the function f (x), where x is the number of months since the release of their first album.
(a) If the band had 3000 listeners four months after the release of their first album, and the percent
rate of change was 36% per month, find the rate of change of listeners in the fourth month to
the nearest whole number. Give a sentence of interpretation for your answer.

(b) A year after the release, the band had 12000 listeners. Find the average rate of change of the
band’s Spotify listeners between four months and a year after the release of the first album.
Round to the nearest whole number, if necessary. Give a sentence of interpretation for your
answer.

Chapter 2.2 75
Measures of Change at a Point - Graphical Average Change vs. Instantaneous Change

Example 2.2.12. For the following, use the picture below:

(a) For a crew working 32 crew-hours, the rate of (e) The slope of which quantity is positive for
change of which two quantities are positive? less than 64 hours?

(b) For a crew working 30 crew-hours, which two

quantities can be improved by adding crew (f) For a crew working 75 crew-hours, the slope
hours? of which two quantities are nearly equal?

(c) At 56 crew-hours, give a relationship be-

tween the slopes of total product, average
product, and marginal product. (g) For a crew working 24 crew-hours, which
quantity is near its greatest slope?

(d) Starting with 24 crew-hours, which quantity

has negative slope?

76 Chapter 2.2
Average Change vs. Instantaneous Change Measures of Change at a Point - Graphical

Example 2.2.13. For the picture below, do the following:

(a) Estimate a second point on the tangent line
(b) Calculate the rate of change of the function at the labeled point; include units and round to 2
decimal places if necessary.
(c) Calculate the percentage rate of change of the function at the labeled point; include units and
round to 2 decimal places if necessary.

Chapter 2.2 77
Rates of Change: Notation & Interpretation Notation and Terminology

Rates of Change: Notation & Interpretation

Average ROC vs. Instantaneous ROC
Average Rate of Change

(Instantaneous) Rate of Change

Notation and Terminology

Rate of change at a specific point a is often referred to as any of the following (given a function f ):

We also have two different notations for the derivative of f at point a:

ˆ f ′ (a). This is read “f prime of a”.
df
ˆ . This is read “d-f d-x, evaluated at a”, or as “the derivative of f with respect to x,
dx x=a
evaluated at a”.

Note: We will freely interchange between any of the above terminology or notations.

78 Chapter 2.3
Examples Rates of Change: Notation & Interpretation

Examples
Example 2.3.1. The function f gives weekly profit, in thousands of dollars, that an airline makes
on flights from Boston to Washington, D.C. when the ticket price is p dollars. Write a sentence
interpreting the following:
(a) f (65) = 15

(b) f ′ (65) = 1.5

(c) f ′ (90) = −2

Example 2.3.2. The function C gives the number of bushels of corn produced on a tract of
farmland that is treated with f pounds of nitrogen per acre.
(a) Is it possible for C(90) to be negative? Why?

dC
(b) What are the units of ?
df f =90

dC
(c) Is it possible for to be negative? Why?
df f =90

dC
(d) Give an alternate notation for the statement .
df f =90

Chapter 2.3 79
Rates of Change: Notation & Interpretation Examples

Example 2.3.3. Sketch a possible graph of t(x), given that:

ˆ t(3) = 7
ˆ t(4.4) = t(8) = 0
ˆ t′ (6.2) = 0
ˆ t has no change in concavity

Example 2.3.4. The function w gives a certain Business Calculus instructor’s weight (in pounds)
t weeks after he begins a diet. Write a sentence of interpretation for each of the following statements:
(a) w(0) = 180 and w(12) = 165

(b) w′ (1) = −2 and w′ (9) = −1

dw dw
(c) = 0 and = 0.25
dt t=12 dt t=15

80 Chapter 2.3
Examples Rates of Change: Notation & Interpretation

Example 2.3.5. Sketch a possible graph of the function m with input t, given that
ˆ m(4) = 8
ˆ m′ (4) is greater than any other slope.
ˆ m′ (0) = m′ (6) = 0
ˆ The graph of m has no direction changes.

Example 2.3.6. The function g gives the fuel efficiency in miles per gallon of a car traveling v
miles per hour. Write a sentence of interpretation for each of the following:
(a) g(55) = 32 and g ′ (55) = −0.25

(b) g ′ (45) = 0.15 and g ′ (51) = 0

Chapter 2.3 81
Rates of Change: Notation & Interpretation Examples

Example 2.3.7. The figure below depicts the number of customers that a fast-food restaurant
serves each hour on a typical weekday:

(a) Estimate the average rate of change of the number of customers between 7am and 11am.
Interpret your answer.

(b) Estimate the instantaneous rate of change and percentage rate of change of the number of
customers at 4pm. Interpret your answers.

82 Chapter 2.3
Derivative: Numerical Definition Rates of Change: Numerical Limits & Nonexistence

Rates of Change: Numerical Limits & Nonexistence

Derivative: Numerical Definition
Let a be fixed, and let x be some point on f other than a. Then, the slope of the secant line is
given by

Taking limits, we have the definition for the derivative of f at a point a:

√
Example 2.4.1. Find the derivative of the function f (x) = 2x at x = 3 using the numerical
method. Round your final answer to the thousandths place, if necessary.

f (x) − f (3) f (x) − f (3)

x x
x−3 x−3

2.9 3.1

2.99 3.01

2.999 3.001

2.9999 3.0001

2.99999 3.00001

f ′ (3) ≈ f ′ (3) ≈

f ′ (3) ≈

Chapter 2.4 83
Rates of Change: Numerical Limits & Nonexistence Derivative: Numerical Definition

Example 2.4.2. A multinational corporation invests $32 billion in assets, resulting in the future
value F (t) = 32(1.12t ) billion dollars after t years.
(a) By how much is the investment growing in the fourth year? Write a sentence interpreting your
answer, and round to the nearest hundredth.
F (t) − F (4) F (t) − F (4)
t t
t−4 t−4

F (t) − F (4) F (t) − F (4)

lim− lim+
x→4 t−4 x→4 t−4

F ′ (4) ≈

(b) Find the percent rate of change in the fourth year. Round to 2 decimal places.

84 Chapter 2.4
Exercises Rates of Change: Numerical Limits & Nonexistence

Derivative: Existence
The derivative of a function does not always exist; the definition requires that the function be
smooth and continuous. Formally, we say that a function is differentiable when the derivative exists
for all x in some interval (a, b). We have three cases for nonexistence:

Exercises
Example 2.4.3. Numerically estimate the derivative of the function f (x) = −x2 + 4x at x = −1.
Round your final answer to the nearest tenth.

x x

Chapter 2.4 85
Rates of Change: Numerical Limits & Nonexistence Exercises

Example 2.4.4. Numerically estimate the derivative of the function g(y) = 5 ln y at x = 5.

Round your final answer to the nearest hundredth.

x x

Example 2.4.5. The annual number of passengers going through the Atlanta airport between
2000 and 2008 can be modeled as p(t) = −0.102t3 + 1.39t2 − 3.29t + 79.25 million passengers, t
years since 2000.
(a) Estimate p′ (6) numerically to the nearest thousandth.

t t

86 Chapter 2.4
Exercises Rates of Change: Numerical Limits & Nonexistence

(b) Write an interpretation of p′ (6).

(c) Find the percent rate of change in 2006, to the nearest hundredth.

Example 2.4.6. The average weekly sales (in million dollars) for Abercrombie & Fitch between
2004 and 2008 is given in the table below.
Year 2004 2005 2006 2007 2008
Sales (in million dollars) 38.87 53.56 63.81 72.12 68.08
(a) Align the data so that the year 2000 corresponds to an input of 0. Determine and write the
most appropriate model for the data using this alignment.

Chapter 2.4 87
Rates of Change: Numerical Limits & Nonexistence Exercises

(b) Estimate the rate of change of average weekly sales in the year 2007 and interpret your answer.

x x

88 Chapter 2.4
The Derivative, Algebraically The Derivative, Algebraically

The Derivative, Algebraically

Definition 2.5.1 (Derivative (Algebraic Definition))

Let f (x) be a function defined on the open interval (a, b), and x ∈ (a, b). Then, the derivative
of f at point x is given by the formula

Question 2.5.2 Why is this definition the same as the one in §2.4?

It is useful to remember a few things from algebra when doing these calculations:

When we algebraically find the derivative of a function, there is a four-step process which makes
the algebra much simpler, and the derivative easier to find. The steps are:

1.

2.

3.

4.

This is demonstrated below.

Chapter 2.5 89
The Derivative, Algebraically The Derivative, Algebraically

Example 2.5.3. Algebraically find the derivative of the function f (x) = x2 using the four-step
process.

90 Chapter 2.5
The Derivative, Algebraically The Derivative, Algebraically

Example 2.5.4. Algebraically find the derivative of the function f (x) = 5x−2 using the four-step
process.

Chapter 2.5 91
The Derivative, Algebraically The Derivative, Algebraically

Example 2.5.5. The time it takes an average athlete to swim 100 meters freestyle at age x years
can be modeled as
t(x) = 0.181x2 − 8.463x + 147.376 seconds
(a) Calculate the swim time at age 13 to the nearest second.

(b) Use the algebraic method to develop a formula for the derivative of t (ie, find t′ (x)).

(c) How quickly is the time to swim 100 meters freestyle changing for an average 13-year-old athlete?
Round to the nearest hundredth and interpret the result.

(d) Compute the percent rate of change of swimmers’ time at age 13, to the nearest tenth.

92 Chapter 2.5
The Derivative, Algebraically The Derivative, Algebraically
1 1 df
Example 2.5.6. Algebraically determine the derivative of f (t) = t2 − , and evaluate
2 3 dt t=1

Chapter 2.5 93
The Derivative, Algebraically The Derivative, Algebraically

Example 2.5.7. Algebraically determine the derivative of k(r) = r2 − 2r3 , and evaluate k ′ (0)

94 Chapter 2.5
Rate of Change Graphs Rate of Change Graphs

Rate of Change Graphs

We will use the following terminology interchangeably:

The following information will be useful when constructing slope graphs:

Derivative is: Function graph is: Slope graph is:

Positive

Zero

Negative

Things to keep in mind when plotting the slope graph:

ˆ result in a max or min on the derivative graph.

ˆ Derivatives may fail to exist at some points; there may be a

ˆ The slope graph reports of the original graph; a negative slope results

in a , and a positive slope results in a .

Chapter 2.6 95
Rate of Change Graphs Rate of Change Graphs

Example 2.6.1. Sketch the rate of change graph for the function
f (x)

x
1.13 2.33 3.53

f ′ (x)

x
1.13 2.33 3.53

96 Chapter 2.6
Rate of Change Graphs Rate of Change Graphs

Example 2.6.2. Sketch (and label) the slope graphs of the following functions:

y y

x x
a

(a)

Chapter 2.6 97
Rate of Change Graphs Rate of Change Graphs

y y

a x x

(b)

98 Chapter 2.6
Rate of Change Graphs Rate of Change Graphs

y y

a
c x x
b a b c

(c)

a c a b c
b

Chapter 2.6 99
Rate of Change Graphs Rate of Change Graphs

Example 2.6.3. The figure below shows the membership in a campus organization during its
first year. Round all answers to the nearest member.

(a) Estimate the average rate of change of membership from September through May.

(b) Estimate the instantaneous rate of change in October, December, and April.

(c) Sketch a rate-of-change graph for membership. Label both axes.

100 Chapter 2.6

Rate of Change Graphs Rate of Change Graphs

Example 2.6.4. The figure below shows cattle prices (for choice of 450-pound steer calves) from
October 1994 through May 1995.

(a) For which input value does the derivative fail to exist? Give a clear, mathematical reason why.

(b) Sketch a slope graph of p. Label both axes.

Chapter 2.6 101

 CHAPTER 2. DESCRIBING CHANGE: RATES

Example 2.6.5. Sketch the slope graph of a function f with input t that meets the following
criteria:
ˆ f (−2) = 5
ˆ the slope is positive for t < 2
ˆ the slope is negative for t > 2
ˆ f ′ (2) does not exist

Example 2.6.6. Sketch the slope graph of a function g with input x that meets these criteria:
ˆ g ′ (x) > 0 for x > 3
ˆ g(3) does not exist
ˆ g is concave up for x > 3
ˆ g ′ (0) = −4
ˆ lim+ g(x) → ∞
ˆ g ′ (x) < 0 for x < 3 x→3
ˆ g is concave down for x < 3 ˆ lim− g(x) → −∞
x→3

102
The Formulas Simple Rate of Change Formulas

Chapter 3

Determining Change: Derivatives

Simple Rate of Change Formulas

The Formulas
Instead of calculating derivatives by hand every time, we can develop sets of rules which will help us
more easily calculate them. These are given below; let c be a constant, and f (x), g(x) be functions:

Name Function Derivative

Constant Rule f (x) = b f ′ (x) =

Power Rule f (x) = xn f ′ (x) =

Constant c · f (x) f ′ (x) =

Multiplier Rule

Sum Rule f (x) + g(x)

Difference Rule f (x) − g(x)

Chapter 3.1 103

Simple Rate of Change Formulas Examples

Examples
Example 3.1.1. Write the formula for the derivative of the function.
(a) f (x) = x2

(b) g(x) = 3x4

(c) h(t) = 0.2t50 − 10t + 1

(d) x(t) = t2π

(e) f (x) = 3x3

104 Chapter 3.1

Examples Simple Rate of Change Formulas

(f) q(x) = zxn+2

(g) f (x) = 12x0.4 + 2x56 + 5

(h) g(x) = −3.2x−3.5 + 6.1x5/2 − 5.3

(i) f (x) = 7x−3

9
(j) g(x) = −
x2

Chapter 3.1 105

Simple Rate of Change Formulas Examples
√
(k) f (x) = 4 x + 3.3x5

4x2 + 19x + 6
(l) k(x) =
x

(m) g(t) = 5.8t3 + 2t−1.2 − 5

Example 3.1.2. Find the derivative of h(x) = x2 (x3 + 1)

106 Chapter 3.1

Examples Simple Rate of Change Formulas

Example 3.1.3. The temperature (in ◦ F ) of Norman on Wednesday can be modeled by t(x) =
−0.8x2 + 11.6x + 38.2 degrees Fahrenheit, x hours after 6 A.M.
(a) Write the complete rate of change model for the temperature.

(b) By how much is the temperature changing at 10 A.M.? Round your answer to the nearest
hundredth.

dt
(c) Compute and interpret . Round your answer to the nearest tenth.
dx x=10

(d) Compute the percent rate of change of temperature at 4:00pm. Round your answer to the
nearest hundredth.

Chapter 3.1 107

Simple Rate of Change Formulas Examples

Example 3.1.4. The table shows the metabolic rate of a typical 18- to 30-year-old male according
to his weight:
Weight (lbs) 88 110 125 140 155 170 185 200
Metabolic Rate (kCal/day) 1291 1444 1551 1658 1750 1857 1964 2071
(a) Find a complete linear model for the metabolic rate of a typical 18- to 30-year-old male.

(b) Write the derivative model for the formula in part (a).

(c) Write a sentence which interprets the derivative of the metabolic rate model of a 26-year-old
male. Round your answer to the nearest whole number.

108 Chapter 3.1

Examples Exponential & Logarithmic Rate of Change Formulas

Exponential & Logarithmic Rate of Change Formulas

The Formulas
For exponential and logarithmic functions, we have the following formulas:

Name Function Derivative

General Exponential f (x) = bx f ′ (x) =

Rule

Exponential Rule f (x) = ex f ′ (x) =

Logarithm Rule f (x) = ln x f ′ (x) =

Examples
Example 3.2.1. Write the formula for the derivative of the function.
(a) h(x) = 3 − 7ex

(b) f (x) = 6(0.8)x

 4a
0.05
(c) f (a) = 10 1 +
4

(d) g(x) = 4 ln x − eπ

Chapter 3.2 109

Exponential & Logarithmic Rate of Change Formulas Examples

(e) f (x) = 3.7ex − 2 ln x

(f) y(x) = − ln x + 2ex

√
(g) f (g) = 4 g + 5(1.2)g

 r nt
(h) k(t) = P 1 +
n

110 Chapter 3.2

Examples Exponential & Logarithmic Rate of Change Formulas

Example 3.2.2. For the first two hours after yeast dough has been kneaded, it doubles in volume
approximately every 42 minutes. If 1 quart of yeast dough is left to rise in a warm room, its growth
can be modeled as v(h) = eh quarts, where h is the number of hours the dough has been allowed
to rise.
(a) How many minutes will it take the dough to attain a volume of 2.5 quarts?

(b) Write a model for the rate of growth of the yeast dough.

Example 3.2.3. The weight of a laboratory mouse between 3 and 11 weeks of age can be modeled
as w(t) = 11.3 + 7.37 ln t grams, where the age of the mouse is t + 2 weeks.
(a) What is the weight of a 9-week-old mouse? Round to the nearest hundredth.

(b) Write a rate of change model for the weight of the mouse, and determine how rapidly its weight
is changing at 9 weeks.

Chapter 3.2 111

Exponential & Logarithmic Rate of Change Formulas Examples

(c) What is the average rate of change in the weight of the mouse between ages 7 and 11 weeks?
Round to the nearest hundredth.

(d) Does the rate at which the mouse is growing increase or decrease as the mouse gets older?
Why?

Example 3.2.4. Suppose the managers of a dairy company have modeled weekly production
costs as c(u) = 3250 + 75 ln u dollars for u units of dairy products. Weekly shipping cost for u units
is given by s(u) = 50u + 1500 dollars.
(a) Write the formula for the total weekly cost of production and shipping of u units.

(b) Write the rate of change model of the total weekly cost of producing and shipping u units.

(c) Calculate the total cost to produce and ship 5000 units in 1 week.

(d) Calculate and interpret the rate of change in the total cost to produce and ship 5000 units in
1 week.

112 Chapter 3.2

Examples Exponential & Logarithmic Rate of Change Formulas

Example 3.2.5. An individual has $45,000 to invest. $32,000 will be put into a low-risk mutual
fund averaging 6.2% interest compounded monthly, and the remainder will be invested in a high-
yield bond fund averaging 9.7% interest, compounded continuously.
(a) Write an equation for the total amount in the two investments, using I(t) as your function.

(b) Write the rate of change model for the low-risk fund, using L(t) as your function.

(c) Write the rate of change model for the high-yield fund, using H(t) as your function.

(d) Write the rate of change model for the combined investment.

dI
(e) Calculate and interpret after 8 months, and after 18 months.
dt

Chapter 3.2 113

Rate of Change of Composite Functions Review: Composite Functions

Rate of Change of Composite Functions

Review: Composite Functions
Two functions f (x) and x(t) can be composed if and only if the output of x(t) is the input of f (x).
Notice how the notation is suggestive; f inputs x, which is exactly what x(t) outputs. We write
the composition either as (f ◦ x)(t) or f (x(t)). The new input is now the input of x (ie, t), and the
new output is the output of f (namely, f ).

Example 3.3.1. Identify the functions which make up the composite functions given below.
1
(a) f (x) =
x+2

(b) g(x) = ln(x2 )

(c) h(t) = e5t

(d) q(x) = (2x + 1)5

 3
1
(e) n(f ) = 3 +
f

114 Chapters 3.3 & 3.4

Review: Composite Functions Rate of Change of Composite Functions
 
2 1
(f) s(h) = ln 5h +
h

5.317
(g) y(r) =
(2r5 + 1.7)2

r
c
(h) w(c) = 3
1+c

√
(i) f (x) = 1 − ex + 5x

Chapters 3.3 & 3.4 115

Rate of Change of Composite Functions Examples

The Chain Rule

The chain rule is a rule for finding the derivative of composite functions. Let h(x) = f (g(x)), where
the output of g is the input of f . Then,

The best way to learn the chain rule is with practice inside and outside of class.

Examples
Example 3.3.2. For f (t) = 3t2 and t(x) = 4 + 7 ln x, find the rate of change function (f ◦ t)′ (x)
with respect to x.

Example 3.3.3. Let c(x) = 3x2 − 2 and x(t) = 4 − 6t. Find c′ (t)

116 Chapters 3.3 & 3.4

Examples Rate of Change of Composite Functions

Example 3.3.4. Consider the following functions:

f (g) = ln g g(h) = 5h + 2 h(j) = ej j(x) = 4x−1

Find f (x) and f ′ (x).

1
Example 3.3.5. Find the derivative of f (x) =
x+2

Example 3.3.6. Find the derivative of f (x) = ln(x2 )

Chapters 3.3 & 3.4 117

Rate of Change of Composite Functions Examples

Example 3.3.7. Find the derivative of f (x) = (ln x)3

Example 3.3.8. Find the derivative of f (x) = e5x

Example 3.3.9. Find the derivative of f (x) = (ex )4

118 Chapters 3.3 & 3.4

Examples Rate of Change of Composite Functions

Example 3.3.10. Find the derivative of f (x) = 7 + 5 ln(4x2 + 3)

Example 3.3.11. If s(t) = 3e5t , find s′ (t)

2
Example 3.3.12. Find the derivative of k(x) = 3e4x

Chapters 3.3 & 3.4 119

Rate of Change of Composite Functions Examples

Example 3.3.13. Find the derivative of p(t) = (5 + 6e2t )3

Example 3.3.14. f (x) = 6(4x2 + 3)5

Example 3.3.15. f (x) = −12 ln(6x2 + 3x )

120 Chapters 3.3 & 3.4

Examples Rate of Change of Composite Functions

Example 3.3.16. f (x) = 2e0.5x − 2x

7.2
Example 3.3.17. f (x) =
(4x3 + 1)4

√
Example 3.3.18. f (x) = 3 x3 + 2 ln x

Chapters 3.3 & 3.4 121

Rate of Change of Composite Functions Examples

Example 3.3.19. Find the derivative of f (x) = ekx

Example 3.3.20. Compute the derivative of ef (x)

1.356
Example 3.3.21. Find the derivative of the function
1 + 20.5e−4.6t

122 Chapters 3.3 & 3.4

Examples Rate of Change of Composite Functions

Example 3.3.22. Compute the derivative of j(x) = ln(ln(ln(x2 − e3x )))

Example 3.3.23. The number of children under 18 living in households headed by a grandparent
can be modeled as
p(t) = 2.111e0.04t million children
where t is the number of years since 1980.
(a) Write the rate-of-change formula for p.

(b) How rapidly was the number of children living with their grandparents growing in 2010?

Chapters 3.3 & 3.4 123

Rate of Change of Composite Functions Examples

Example 3.3.24. The tuition x years from now at OU is projected to be t(x) = 24072e0.056x
dollars.
(a) Write the rate-of-change formula for tuition.

(b) What is the rate of change in tuition four years from now?

124 Chapters 3.3 & 3.4

Product Rule Rate of Change of Product Functions

Rate of Change of Product Functions

Product Rule
The product rule allows us to take derivatives of product functions, i.e. functions that look like
h(x) = f (x) · g(x). The product rule is

Example 3.5.1. Find the derivative of h(x), where h(x) = [4(3x )] · [5x2 ].

ln(2y)
Example 3.5.2. Find the derivative of g(y) = .
1 + y2

Chapters 3.5 & 3.6 125

Rate of Change of Product Functions Product Rule

Example 3.5.3. Compute the derivative of the function g(x) = 3x−0.7 · 5x

1
Example 3.5.4. Let f (x) = 3 ln(2 + 5x), and h(x) = . Find (f · h)′ (x).
ln x

Example 3.5.5. The profit from the supply of a certain commodity is modeled by P (q) = 72qe−0.2q
dollars, when q units are produced.
(a) Write the complete rate of change model for profit.

(b) At what production level(s) is the rate of change of profit zero? If necessary, round your answer
to two decimal places.

(c) What is profit at the production level for the value in part (b)?

126 Chapters 3.5 & 3.6

Quotient Rule Rate of Change of Product Functions

Quotient Rule
f (x)
Alternately, for a quotient function, we may employ the quotient rule. If k(x) = , then
g(x)

This can be remembered as

ln(2y)
Example 3.5.6. Use the quotient rule to find the derivative of g(y) =
1 + y2

Chapters 3.5 & 3.6 127

Rate of Change of Product Functions Examples

Examples
Example 3.5.7. The production level at a plant manufacturing radios can be modeled as f (x) =
10.54x0.5 (2 − 0.13x)0.3 thousand radios, where x thousand dollars has been spent on modernizing
plant technology.
(a) Identify two functions g and h that, when multiplied, form the production model- one of the
functions will need the chain rule.

(b) Using function notation, write the notation for the production model and for the rate of change
of the production model.

(c) Write a model for the rate of change of production

Example 3.5.8. Write the product function and rate-of-change function for the given functions.
(a) g(x) = 5x2 − 3 and h(x) = 1.2x

(b) g(x) = 6e−x + ln x and h(x) = 4x2.1

128 Chapters 3.5 & 3.6

Examples Rate of Change of Product Functions

Example 3.5.9. Find the derivatives of the following functions.

(a) f (x) = (ln x)ex

(b) g(x) = (x + 5)ex

(c) t(x) = (5.7x2 + 3.5x + 2.9)3 (3.8x2 + 5.2x + 7)−2

Chapters 3.5 & 3.6 129

Rate of Change of Product Functions Examples

2x3 + 3
(d) f (x) =
2.7x + 15

 
2 39
(e) f (x) = (8x + 13)
1 + 15e−0.09x

3
(f) f (x) = [ln(15.7x3 )] · [e15.7x ]

4(3x )
(g) f (x) = √
x

130 Chapters 3.5 & 3.6

Examples Rate of Change of Product Functions
14x
(h) f (x) =
1 + 12.6e−0.73x

Example 3.5.10. A store has determined that the number of cookies sold monthly is approxi-
mately c(x) = 6250(0.929x ) cookies, where x is the average price of a cookie (in dollars).
(a) Write a model for revenue as a function of price.

(b) If each cookie costs the store $1, write a model for profit as a function of price.

(c) Write the complete rate of change model for revenue as a function of price.

Chapters 3.5 & 3.6 131

Rate of Change of Product Functions Examples

Example 3.5.11. Find the derivative of t(x) = (6x3 )(ln x)(e2x ).

132 Chapters 3.5 & 3.6

Definitions Relative Extreme Points

Chapter 4

Analyzing Change: Applications of

Derivatives

Relative Extreme Points

Definitions

Definition 4.2.1 (Relative Extrema)

Let f (x) be a function defined on an input interval [a, b]. Let a < c < b.

We say that f has a at c if the output f (c) is

any other output in some interval around c. Likewise, f has a

at c if the output f (c) is any

other output in some interval around c.

Relative maxima/minima are also referred to as

Definition 4.2.2 (Critical Point)

A critical point of a continuous function f is a pair at which f is

. The input value c of a

critical point is called the .

Chapter 4.2 133

Relative Extreme Points Definitions

Example 4.2.3. Find the critical points of f (x) = 4x3 + 8x2 − 20x − 21 on the interval [−5, 5].

Theorem 4.2.4 (First Derivative Test)

Suppose c is a critical input of a continuous function f .

ˆ If f ′ changes from positive to negative at c, then

.
ˆ If f changes from negative to positive at c, then
′

.
ˆ If f does not change its sign at c, then
′

Theorem 4.2.5 (Conditions Where Extreme Points Exist)

For a function f with input x, a relative extremum can occur at x = c only if f (c) exists/is
defined. Further,
ˆ A relative extremum exists where and the graph of f ′ (x)

the input axis at x = c.

ˆ A relative extremum can exist where f (x) exists, but f ′ (x) does not exist; further investi-
gation will be needed.

134 Chapter 4.2

Methods of Finding Extrema Relative Extreme Points

Theorem 4.2.6 (Old Derivative Facts)

Let f (x) be a function defined on an input interval [a, b], and let a < c < b.

ˆ If , then f (x) is increasing at x = c.

ˆ If , then f (x) is decreasing at x = c.

ˆ If , then the line tangent to f (x) at x = c is horizontal.

Methods of Finding Extrema

Let f (x) be differentiable on an open interval (a, b).

Algebraic Method:
1. Calculate the derivative f ′ (x)
2. Set f ′ (x) = 0 and solve for x. All solutions will be horizontal asymptotes; individual analysis
(corresponding to 1st Derivative Test) will determine if f ′ (c) is a maximum, minimum, or
neither.
Calculator, Method 1:
1. Input f (x) into Y1
2. Plot f (x), and do Zoom→0:ZoomFit
3. If you are finding a local maximum, press 2nd→Trace→4:maximum. If you are finding a
local minimum, press 2nd→Trace→3:minimum.
(a) The calculator will prompt for a left bound. Input a number slightly less than where you
expect the maximum/minimum to be.
(b) The calculator will then prompt for a right bound. Input a number slightly greater than
where you expect the maximum/minimum to be.
(c) The calculator will then prompt for a guess. Input a guess, or press enter.
(d) The max/min will be displayed as a coordinate pair. If the pair is needed, use appropriate
rounding guidelines.
(e) If you forget the value of the max/min, the calculator will store the x−coordinate in the
variable X. In order to recall it, on the home screen, press X and the calculator will
return the appropriate value.

Chapter 4.2 135

Relative Extreme Points Examples

Calculator, Method 2:
1. Input f (x) into Y1
2. In Y2 , use the nDeriv command by pressing Math→nDeriv(. The complete entry must look
like
Y2 = nDeriv(Y1(X),X,X)
This will have the calculator graph the derivative as well as the original function
3. The local extrema are given by wherever the derivative graph touches the x−axis. According
to 1st Derivative Test, a local max occurs when the derivative crosses from positive to negative,
and a local min occurs when the derivative crosses from negative to positive.

Examples
Example 4.2.7. The percentage of people in the United States (aged 15 and above) who are
sleeping at a given time of night can be modeled as

s(t) = −2.63t2 + 29.52t + 13.52 percent, t number of hours after 9pm

(a) Find the critical input values of s on the interval 0 ≤ t ≤ 11, and calculate the output value
for any critical point.

(b) Graph s(t) and s′ (t). Label and interpret the critical inputs.

Example 4.2.8. Sketch a graph such that

ˆ f ′ (x) > 0 for x < −1
ˆ f ′ (x) < 0 for x > −1
ˆ f ′ (−1) = 0

136 Chapter 4.2

Examples Relative Extreme Points

Example 4.2.9. Sketch a graph such that

ˆ f has a relative maximum at x = 3
ˆ f has a relative minimum at x = −1
ˆ f ′ (x) < 0 for x < −1 and x > 3
ˆ f ′ (x) > 0 for −1 < x < 3
ˆ f ′ (−1) = f ′ (3) = 0

Example 4.2.10. Consider the function f (x) = x2 + 2.5x − 6.

(a) Write the derivative formula

(b) Locate and classify each critical point.

Chapter 4.2 137

Relative Extreme Points Examples

Example 4.2.11. Consider the function f (x) = 0.3x3 + 1.2x2 − 6x + 4.

(a) Write the derivative formula

(b) Locate and classify each critical point.

Example 4.2.12. Consider the function f (x) = 5e−x + ln x (for x > 0).
(a) Write the derivative formula

(b) Locate and classify each critical point.

138 Chapter 4.2

Examples Relative Extreme Points
10
Example 4.2.13. Consider the function f (x) = .
1 + 2e−0.5x
(a) Write the derivative formula

(b) Locate and classify each critical point.

Example 4.2.14. For the following graphs, determine which of the following statements are true:
(1) f ′ (x) > 0 for x < 2
(2) f ′ (x) > 0 for x > 2
(3) f ′ (x) = 0 for x = 2

Chapter 4.2 139

Absolute Extreme Points Examples

Absolute Extreme Points

Definition 4.3.1 (Absolute Extrema)

A function f has an absolute maximum at input c if

. Similarly, f has an absolute minimum

at c if .

In practice, there is very little distinction between what we did in 4.2 and what we do here in 4.3;
the key difference is determining whether or not the particular max/min is the greatest or the least
output value.

Examples
Example 4.3.2. Consider the function f (x) = 6x4 − 6x3 − 5x2 + 5x − 1
(a) Locate any extreme values of the function on the interval −2 ≤ x ≤ 2.

(b) Classify the extreme values you found in part (a)

140 Chapter 4.3

Examples Absolute Extreme Points

Example 4.3.3. Consider the function g(t) = −0.37t3 + 5.34t2 − 9.66t + 96.93
(a) Locate any extreme values of the function on the interval 0 ≤ x ≤ 11.

(b) Classify the extreme values you found in part (a)

Example 4.3.4. Consider the function h(p) = (e2−p )(3p − p2 )

(a) Locate any extreme values of the function on the interval −1 ≤ x ≤ 4.

(b) Classify the extreme values you found in part (a)

Chapter 4.3 141

Absolute Extreme Points Examples

Example 4.3.5. Consider the function y(x) = 0.75x4 − 3.86x2 + 10.18x + 22.186
(a) Locate any extreme values of the function on the interval (−∞, ∞)

(b) Classify the extreme values you found in part (a)

Example 4.3.6. Find and classify the absolute and relative maxima/minima for the function
f (x) = 3x4 − 16x3 + 18x2 on [−1, 4]. If necessary, round to the nearest hundredth.

142 Chapter 4.3

Examples Absolute Extreme Points

Example 4.3.7. Find the absolute and relative extrema for the function f (x) = x3 − 3x2 + 1 on
1
− ≤ x ≤ 4. If necessary, round to the nearest hundredth.
2

Example 4.3.8. Find and classify all extrema of the function f (x) = 12 + 4x − x2 on [0, 5]. If
necessary, round to the nearest hundredth.

Chapter 4.3 143

Absolute Extreme Points Examples

Example 4.3.9. Find and classify all extrema of the function f (t) = (t2 − 4)3 on [−2, 3]. If
necessary, round to the nearest hundredth.

Example 4.3.10. Find the relative and absolute maxima and minima of the function g(x) =
x
2
on [0, 3]. If necessary, round to the nearest hundredth.
x −x+1

144 Chapter 4.3

Examples Absolute Extreme Points

Example 4.3.11. The sales of a new Starbucks drink are approximated by the function S(x) =
−.002x4 +.093x3 −1.38x2 +6.573x+5.393 thousand dollars, x months after its introduction. Round
your answers to the nearest hundredth.
(a) The absolute maximum of drink sales between month 1 and month 15 was

and occurred months after release.

(b) The absolute minimum of drink sales between month 1 and month 15 was

and occurred months after release.

(c) Calculate the percent rate of change 4 months after introduction, to the nearest hundredth as
a percent.

Example 4.3.12. The quantity of a drug in the bloodstream t hours after a tablet is swallowed
is given by q(t) = 20(e−t − e−3t ) µg.
(a) How much of the drug is in the bloodstream at time t = 0?

(b) Over the first twelve hours, at what time is the amount of drug in the bloodstream at its
highest? What is the maximum amount?

Chapter 4.3 145

Inflection Points & Second Derivatives Definitions

Inflection Points & Second Derivatives

Definitions

Definition 4.4.1 (Inflection Point)

An inflection point is the point on the graph of a function where

An inflection point gives the point of change of the func-

tion.

Theorem 4.4.2 (Properties of the Second Derivative)

Let f (x) be a twice-differentiable function defined on input interval [a, b], with a < c < b.

ˆ f has an inflection point at x = c if and only if .

ˆ If f ′′ (c) is positive, then .

ˆ If f ′′ (c) is positive, then .

ˆ If f ′′ (c) is negative, then .

ˆ If f ′′ (c) is negative, then .

Theorem 4.4.3 (Second Derivative Test)

Let f (x) be a twice-differentiable function defined on input interval [a, b], with a < c < b.

ˆ .

ˆ .

146 Chapter 4.4

Examples Inflection Points & Second Derivatives

Examples
Example 4.4.4. The percentage of people living in California in 2007 who were born in the state
can be modeled as

P (x) = −0.0016x3 + 0.224x2 − 10.577x + 204.8 percent

where x is the age of the resident.

(a) Find the inflection point of the function P .

(b) Give a sentence of interpretation for the age between 20 and 70 at which the percentage of
California residents who were born in the state was decreasing least rapidly.

Example 4.4.5. For the function

f (t) = −2.1t2 + 7t
(a) Write the first and second derivative.

(b) Identify any inflection points, and label them as the point of least rapid or most rapid change.

Chapter 4.4 147

Inflection Points & Second Derivatives Examples

Example 4.4.6. The percentage of new material that an average college student will retain after
studying for t hours without a break can be modeled as
83
p(t) = percent
1 + 5.94e−0.969t
(a) Find when the retention rate is increasing most rapidly.

(b) Determine the rate of change of retention as well as the percentage of retention at the input
found in item (a).

(c) Describe the difference between the direction of p and p′ to the right of the input found in item
(a).

(d) Explain what happens to the student’s retention rate after the input found in item (a).

148 Chapter 4.4

Examples Inflection Points & Second Derivatives

Example 4.4.7. For the function

g(s) = 32s3 + 2.1s2 + 7s

(a) Write the first and second derivative.

(b) Identify any inflection points, and label them as the point of least rapid or most rapid change.

Example 4.4.8. For the function

h(x) = e3x − ln 3x
(a) Write the first and second derivative.

(b) Identify any inflection points, and label them as the point of least rapid or most rapid change.

Chapter 4.4 149

Inflection Points & Second Derivatives Examples

Example 4.4.9. For the function

16
k(t) =
1 + 2.1e3.9t
(a) Write the first and second derivative.

(b) Identify any inflection points, and label them as the point of least rapid or most rapid change.

Example 4.4.10. For the function

f (x) = −x3 + 12x2 + 36x + 45

(a) Write the first and second derivative.

(b) Identify any inflection points, and label them as the point of least rapid or most rapid change.

150 Chapter 4.4

Examples Inflection Points & Second Derivatives

Example 4.4.11. The table below shows the monthly revenue levels associated with various
monthly levels of advertising by a furniture store.
Advertising (in hundreds of dollars) 1 4 7 10 13 16 19
Revenue (in thousands of dollars) 114 210 265 299 338 449 632
(a) Find the complete cubic model R(x) for the data (do not align the input).

(b) Write the complete rate of change model for R(x).

(c) Find R′′ (x).

(d) Find the inflection point of R(x) on the interval [0, 19]. Round both coordinates to the hun-
dredths place and be sure to label them with units.

(e) Find the rate of change at the inflection point. Round to the hundredths place and include
units in your answer.

Chapter 4.4 151

Inflection Points & Second Derivatives Examples

Example 4.4.12. Consider the following graphs:

A B C
(a) Write “True” or “False” to the left of the following statements:

The graph of the derivative of A will have no x−intercepts.

The graph of the derivative of B will have exactly one x−intercept.

The graph of the second derivative of C will have exactly two x−intercepts.

The graph of the second derivative of A will always be negative.

(b) Which of the following describes the relationship between these three graphs? Mark an X to
the left of your choice.

B is f (x), C is f ′ (x), and A is f ′′ (x).

A is f (x), C is f ′ (x), and B is f ′′ (x).

C is f (x), A is f ′ (x), and B is f ′′ (x).

B is f (x), A is f ′ (x), and C is f ′′ (x).

152 Chapter 4.4

Examples Optimization of Constructed Functions

Optimization of Constructed Functions

Strategy for Optimization
Step 1: Identify the quantity to be optimized (the output) and the quantities on which the output
quantity depends (the input).
Step 2: Sketch and label a diagram of the situation.
Step 3: Construct a model with a single input variable.
Step 4: Locate the optimal point (minimum/maximum) for the model.

Examples
Example 4.6.1. In 2009, airlines had a 45-inch restriction on the maximum linear measurement
(length + width + height) of carry-on luggage with the height restricted to 10 inches. Passengers
concerned with keeping their travel costs down seek to maximize the capacity of their carry-on bag;
what are the optimal measurements to maximize capacity?

Step 1: We want to maximize capacity of the carry-on, so we want to maximize volume. Because
volume is given by V = lwh, our input variables are l, w, and h. In particular, we’re told that
h = 10; thus, V = 10lw.
Step 2: Fill in the sketch below:

Step 3: In order to write the model with a single input variable, we need a second equation to
eliminate one of the variables. We know that V = 10lw. But, we are also told that the maximum
linear measurement is given by l + w + h = 45. Since h = 10, this becomes l + w + 10 = 45, so
l + w = 35. Now we can solve for either l or w. Choose to solve for length. Thus, l = 35 − w. We
can substitute this into the equation for volume:

V = 10lw
= 10(35 − w)w
= −10w2 + 350w

This gives us an equation in terms of a single variable, one which we can optimize.

Chapter 4.6 153

Optimization of Constructed Functions Examples

Step 4: In order to optimize the equation, we want to find the max or min. Since we want the
most volume, we’re going to find the maximum. We also have an interval, since 0 < l < 35 (from
the maximum linear measurement). Then,

V ′ = −20w + 350

Solving for w gives w = 17.5. Plugging this in to the linear measurement, we have l + 17.5 = 35, so
l = 17.5. This means that our maximum dimensions are 17.5” × 17.5” × 10”, and the maximized
volume is V = (17.5)(17.5)(10) = 3062.5 in3 .

Example 4.6.2. A rectangular-shaped garden has one side along the side of a house. The other
three sides are to be enclosed with 60 feet of fencing. What is the largest possible area of such a
garden?

154 Chapter 4.6

Examples Optimization of Constructed Functions

Example 4.6.3. A mason has enough brick to build a 46 foot wall. The homeowners want to use
the wall to enclose an outdoor patio. The patio will be along the side of the house and will include
a 4-foot opening for a door. What dimensions will maximize the area of the patio?

Example 4.6.4. A cylindrical can is made to hold one liter of oil. Find the dimensions that will
minimize the cost of the metal to manufacture the can, accurate to the nearest hundredth.

Chapter 4.6 155

Optimization of Constructed Functions Examples

Example 4.6.5. A certain orchard in Florida has found that when 14 orange trees are planted,
their yield is 80 oranges per tree. For each tree added to the orchard, each tree’s yield decreases
by 2 oranges per tree. For example, if there are 15 trees planted in the orchard, the yield per tree
drops to 78 oranges per tree. Find the number of trees needed to maximize the total number of
oranges produced.

156 Chapter 4.6

Examples Optimization of Constructed Functions

Example 4.6.6. During one calendar year, a year-round elementary school cafeteria uses 42,000
styrofoam plates/packets, each containing a fork, spoon, and napkin. The smallest amount the
cafeteria can order from the supplier is one case containing 1000 plates and packets. Each order
costs $12, and the cost to store a case for the whole year is $4. Use x to represent the number of
cases ordered at one time in the following:
(a) Write equations for: (1) the number of times the manager will need to order during one calendar
year, and (2) the annual cost to the cafeteria.

(b) Assume that the average number of cases stored throughout the year is half the number of cases
in each order. Write an equation for the total storage cost for 1 year.

(c) Write a model for the combined ordering and storage costs for 1 year.

(d) What order size minimizes the total yearly cost? How many times a year should the manager
order? What will the minimum total ordering and storage costs be for the year?

Chapter 4.6 157

Optimization of Constructed Functions Examples

Example 4.6.7. A student organization is planning a bus trip to the Cotton Bowl to cheer on OU
football in the playoffs. The bus they charter seats 44 and charges a flat rate of $350 plus $35 per
person. However, for ever empty seat on the bus, the charge per person is increased by $2. There
is a minimum of 10 passengers. The organization decides that each person going on the trip will
pay $35; the organization will pay the flat rate and any additional amount about $35 per person.
(a) Construct a model for the revenue made by the bus company as a function of the number of
passengers.

(b) Construct a model for the amount the organization pays as a function of the number of pas-
sengers.

(c) For what number of passengers will the bus company’s revenue be greatest? For what number
of passengers will the bus company’s revenue be least?

158 Chapter 4.6

Examples Optimization of Constructed Functions

Example 4.6.8. A software developer is planning the launch of a new program. The current
version of the program could be sold for $100. Delaying the release will allow the developers to
package add-ons with the program that will increase the selling price by $2 for each day of delay.
However, for each day of delay, the company will lose customers. The company could sell 400,000
copies now, but for each day that release is delayed, they will sell 2,300 fewer copies of the software.
(a) If t is the number of days the company delays the release, write a model for P , the price charged
for the product.

(b) If t is the number of days the company will delay the release, write a model for Q, the number
of copies they will sell.

(c) If t is the number of days the company will delay the release, write a model for R, the revenue
generated from the sale of the product.

(d) How many days should the company delay the release in order to maximize revenue? What is
the maximum possible revenue?

Chapter 4.6 159