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Example Questions
Example Question #1 : How To Find Prediction Models
Suppose you are a banker and set up a very unique function for your interest rate over time given by
However, you find your computer incapable of calculating the interest rate at
. Estimate the value of the interest rate at by using a linear approximation, using the slope of the function at .Undefined
To do a linear approximation, we're going to create a function
, that approximates our situation. In our case, m will be the slope of the function at , while b will be the value of the function at . The z will be distance from our starting position to our end position , which is .
Firstly, we need to find the derivative of
with respect to x to determine slope.By the power rule:
The slope at
will therefore be 0 since .Since this is the case, the approximate value of our interest rate will be identical to the value of the original function at x=2, which is
.
1 is our final answer.
Example Question #2 : How To Find Prediction Models
Approximate the value at
of the function ,with a linear approximation using the slope of the function at .
To do this, we must determine the slope of the function at
, which we will call , and the initial value of the function at , which we will call , and since is only away from , our linear approximation will look like:
To determine slope, we take the derivative of the function with respect to x and find its value at
, which in our case is:
At
, our value for isTo determine
, we need to determine the value of the original equation at
At
, our value for b isSince
,Example Question #3 : How To Find Prediction Models
Determine the tangent line to
at , and use the tangent line to approximate the value at .
First recall that
To find the tangent line of
at , we first determine the slope of . To do so, we must find its derivative.Recall that derivatives of exponential functions involving
are given as:, where is a constant and is any function of
In our case,
,.
At
, , where
is the slope of the tangent line.
To use point-slope form, we need to know the value of the original function at
,
Therefore,
At
,
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