1 00:00:00,120 --> 00:00:04,491 [MUSIC] 2 00:00:04,491 --> 00:00:06,990 So let's just look at a quick little example here. 3 00:00:06,990 --> 00:00:12,640 So I wrote down a function g(w)=5-(w-10)2. 4 00:00:12,640 --> 00:00:15,000 So let's take the derivative of this function. 5 00:00:16,670 --> 00:00:19,750 So we have to go back and remember our calculus but 6 00:00:19,750 --> 00:00:23,420 I promise I'll at least try to keep it simple. 7 00:00:24,660 --> 00:00:27,650 So the derivative of 5 with respect to w is 0. 8 00:00:27,650 --> 00:00:34,560 And then the derivative of this term here, well if you remember, if you have some 9 00:00:34,560 --> 00:00:39,100 function to some power, well first we drop that power, that becomes a multiplier. 10 00:00:39,100 --> 00:00:43,980 We write that function again, and 11 00:00:43,980 --> 00:00:47,450 the power now is one less than what the power was before. 12 00:00:47,450 --> 00:00:50,720 So two minus one is one. 13 00:00:50,720 --> 00:00:53,270 So I'll just write that explicitly to the power of one, 14 00:00:53,270 --> 00:00:57,420 and then I have to multiply by the derivative of the inside. 15 00:00:57,420 --> 00:00:59,550 The derivative of this little function itself. 16 00:00:59,550 --> 00:01:03,290 So what's the derivative of w-10 with respect to w. 17 00:01:04,410 --> 00:01:05,621 It's just 1. 18 00:01:05,621 --> 00:01:06,230 Okay. 19 00:01:06,230 --> 00:01:11,388 So, writing this a little bit more compactly we have -2w 20 00:01:11,388 --> 00:01:15,820 + 20 as the derivative. 21 00:01:15,820 --> 00:01:20,737 And so if we're interested in finding the maximum of this equation, 22 00:01:20,737 --> 00:01:25,690 and let me just say how do we know if we're at a maximum or minimum? 23 00:01:25,690 --> 00:01:30,840 In both cases we had derivative equals zero as the solution, well to know if it's 24 00:01:30,840 --> 00:01:35,890 a min or max, either we can know if we're looking at a concave or convex function, 25 00:01:35,890 --> 00:01:40,050 but typically we won't necessarily know that. 26 00:01:40,050 --> 00:01:42,920 We can look at the second derivative of the function. 27 00:01:42,920 --> 00:01:45,560 Okay, but that's just for your information. 28 00:01:45,560 --> 00:01:47,380 You're not gonna need to know that for this course. 29 00:01:48,890 --> 00:01:51,030 Okay, so this function, if 30 00:01:53,290 --> 00:01:57,420 we draw what this function looks like, then maybe we can see this. 31 00:01:57,420 --> 00:02:02,560 So we know that at w equals 10, what's the value of the function? 32 00:02:02,560 --> 00:02:04,288 It's five. 33 00:02:04,288 --> 00:02:10,360 So add w=10, the value of the function is 5 and 34 00:02:10,360 --> 00:02:16,380 if you go and plot this you'll see that the value everywhere else is decreasing 35 00:02:18,060 --> 00:02:22,200 and so it, it has this concave form. 36 00:02:22,200 --> 00:02:23,030 Okay. 37 00:02:23,030 --> 00:02:24,781 So, how do I find this maximum? 38 00:02:24,781 --> 00:02:28,900 Well I take the derivative and I set it equal to zero and I solve for w. 39 00:02:28,900 --> 00:02:29,848 So let's do that. 40 00:02:29,848 --> 00:02:36,819 Let's set derivative = 0. 41 00:02:36,819 --> 00:02:42,700 So I have -2w + 20 = 0. 42 00:02:42,700 --> 00:02:45,635 And I solve for w and I get 10. 43 00:02:47,650 --> 00:02:49,321 Okay, so that actually matches his picture. 44 00:02:49,321 --> 00:02:54,312 Indeed, w is 10 at the maximum of this function. 45 00:02:54,312 --> 00:02:58,519 [MUSIC]