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Definition of a Derivative

Definition of a Derivative

Definition of a Derivative

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Distinctly feasible ventures have a derivative element, in which the investor bets on the profits that a company would make in the future.

Defination

When the limit exists, f is said to be differentiable at a. Here f′(a) is one of several common notations for the derivative (see below). From this definition it is obvious that a differentiable function f is increasing if and only if its derivative is positive, and is decreasing iff its derivative is negative. This fact is used extensively when analyzing function behavior, e.g. when finding local extrema.

The last expression shows that the difference quotient equals 6 + h when h ≠ 0 and is undefined when h = 0, because of the definition of the difference quotient. However, the definition of the limit says the difference quotient does not need to be defined when h = 0. The limit is the result of letting h go to zero, meaning it is the value that 6 + h tends to as h becomes very small: (Source: en.wikipedia.org)

Derivative

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Furthermore, the derivative is a linear transformation, a different type of object from both the numerator and denominator. To make precise the idea that f ′(a) is the best linear approximation, it is necessary to adapt a different formula for the one-variable derivative in which these problems disappear. If f : R → R, then the usual definition of the derivative may be manipulated to show that the derivative of f at a is the unique number f ′(a) such that (Source: en.wikipedia.org)

en.wikipedia.org)The definition of the total derivative subsumes the definition of the derivative in one variable. That is, if f is a real-valued function of a real variable, then the total derivative exists if and only if the usual derivative exists. The Jacobian matrix reduces to a 1×1 matrix whose only entry is the derivative f′(x). This 1×1 matrix satisfies the property that f(a + h) − (f(a) + f ′(a)h) is approximately zero, in other words that (Source:

 

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