Sven Engels 373231

Simplify: Area and definite integrals:  b 1 2 

1 0 7
a b
x x  x
a b b  f ( x)dx  lim
b 
 f ( x)dx  
A  0 1  then A'   
A(b)  F (b)  F (a)   f ( x)dx  b 2 1 5
a b ab 7 5
(x )  x a Interest, computed periodically:
For calculation of area that (also) has A matrix is symmetric when all non-
a a
x y  ( xy)
a St  S0 (1  r )t ( r =interest %/period,
negative values, calculate x=0’s, diagonal values are equal.
determine areas individually and add S 0 =principal, t  period number) Symmetric matrix: A'  A
1/ 2
x x them up, take absolute values. r Leontief model:
Properties of definite integrals: With periods: St  S0 (1  ) nt x1  x2  d1
xy  x* y n
b a When interest is added n times per x2  x3  d2
x  log a y  a
x
 y  f ( x)dx   f ( x)dx period, the effective periodic rate is: x3  x1 , these equations give:
a b
r
log e x  ln x a R  (1  ) n  1  1  0   d1 
n    
x  f ( x)dx  0 Interest, computed continuously:  0 1     x  d 2 
x  ln y  e  y a   0 1   0 
S (t )  S0  ert , effective periodic
b b
ln b Unique solution only if 1    0
 pf ( x)dx  p  f ( x)dx
x
a bx interest rate: R  er  1
ln a a a Geometric series, finite sums: d  d 2
x1  1 x1, x2 , x3  0 only if:
ln ab  ln a  ln b n 1 1  
b c b Sn  a  ak  ak ²  ...  ak
a  f ( x)dx   f ( x)   f ( x), a  c  b x2 
d 1d 2
  1
ln  ln a  ln b a a c k n 1 1  
Sn  a  if : k  1
b b b b k 1 d 1d 2
x3 
b
ln a  b ln a
 [ pf ( x)  rg ( x)]dx  p  f ( x)  r  g ( x) Infinite sums:
1  
a a a 
a
Derivatives: Calculating derivatives of integrals can  a(k )n  a  ak...  1  k ( k 1) Gaussian elimination:
-Make identity matrix by +/-other rows
F(x) f ( x) f ' ( x) be done manually, or in this form: n 0
& row multiplication by a constant
h( x )
2 x3 / 2 x 1 -Rows can be interchanged freely
3
If: I ( x)   f (t )dt , then: Present value of an annuity A:
-There is no unique solution when one
2 x g ( x) A 1 
Pn  1 
row has only zeroes. The variable of
ex ex ex I ' ( x)  f (h( x))  h' ( x)  f ( g ( x))  g ' ( x) r  (1  r ) n  that row can then be chosen freely;
Consumer and producer surplus: one degree of freedom
e ax e ax ae ax P  lim Pn 
A -No solution possible if one row of A
a n  r has only zeroes, but vector B has value
x(ln(x)  1) ln x Continuous income stream from t0→t Vectors:
1
=T at the rate of f(t) per year at time t Column vector: (n x 1) matrix
x Present discounted value: Row vector: (1 x n) matrix
x x T Inner product of two vectors:
ax a a ln a PDV   f (t )e  rt dt a  (a1,..., an ) b  (b1,..., bn )
ln(a )
0
n
Integration examples: Future discounted value: a  b  a1b1  a2b2  ...anbn   aibi
 f ( x)dx  F ( x)  C Q* T i 1
FDV  e rT  f (t )e  rt dt  e rT  PDV
1 CS   [ f (Q)  P*]dQ Vector c is a linear combination of
 xdx  2 x²  C 0 0 vectors a and b if c can be written as:
Q* Matrices: c=ta+sb with t, s real numbers
1
 x dx  2 x  C PS   [ P *  g (Q)]dQ (m x n) matrix has m rows, n columns Determinants of order 2:
0
Addition and substraction: a a 
A   11 12 
e
x
dx  e x  C Integration by substitution:
Only for same dimensions
 21 22 
a a
5 2  2 4
 ( x²  10)
50 A
1
x p 1  C , p  1
2 xdx  B 
x
p
dx  a a
p 1 8  1 0 1  A  11 12  a11a22  a12a21
u  x²  10 du  2 xdx a21 a22
7 2
1 AB 
 x dx  ln | x | C 1 51
 u du  51 u  C
50
8 0 
 Det of order 3 and cofactors:

Scalar multiplication: Cij  (1)i  j  det of matrix after

1 ax
 e dx 
ax
e C 1
 ( x²  10) 2xdx  51 ( x²  10)  C
50 51
a 15 6   5 2 deleting i-th row and j-th column
3A    A 
1 x (u  g ( x)) 24  3  8 1  a11 a12 a13
a General rule:
x
dx  a  C, a  0 & a  1
ln a Matrix multiplication AB: A  a21 a22 a23
f ( g ( x))  g ' ( x)dx   f (u)du
Formula not defined at asked value: Only when: A # columns = # rows of B a31 a32 a33
Infinite intervals of integration: 10 18 
21 Expansion in terms of row i:
dx  lim 2 1 AB    AB  BA
 h 0   dx
b b
x 1  1 1 16  33 A  ai1Ci1  ai 2Ci 2  ai3Ci3
0
x
h  x²
dx     1 
 x 1 b
1 aij : i-th row, j-th column; eg. a12  2 Expansion in terms of column j:
f(x) is defined [a,b], but not at a and b: 
1 1
b
1 A  a1 j C1 j  a2 j C2 j  a3 j C3 j
b c b
 x² dx  blim  dx  blim (1  )  1 Identity matrix:
 f ( x)dx   f ( x)dx   f ( x)dx 1
 x ²
1
 b
1 0 0
Rules for determinants:
-If all elements in a row (or column) of
a a c The following improper integral: 1 0  
Integration general rules:  b
I2    I 3  0 1 0  A are equal to zero, then A  0
0 1  0 0 1
 af ( x)dx  a f ( x)dx  f ( x)dx  lim
b 
 f ( x)dx '
- A  A r/c=row/column
a a I m A  A AIn  A
 [ f ( x)  g ( x)]dx   f ( x)dx   g ( x)dx Is called convergent if the limit exists -If all elements in a single r/c are
AB  0 does not imply A  0 / B  0
 [ f ( x)  g ( x)]dx   f ( x)dx   g ( x)dx (as a finite number); then f is said to be
AB  AC & A  0 don’t imply B  C
multiplied by a number α, then the
integrable over [a,∞); otherwise the determinant is also multiplied by α
b
integral is called divergent. -If two r/c are interchanged, the
 f ( x)dx  [ F ( x)]a  F (b)  F (a)
b
 0  Transpose matrix: determinant changes sign
  f ( x)dx   f ( x)dx
a
f ( x)dx  Transpose matrix A’ of A: aij'  a ji -If 2 r/c of A are proportional A  0
  0
 Sven Engels 373231
B(t  1)²  C(t  1)  D  3Bt ²  3Ct  3D 
-Det. is unchanged if a multiple of one x
u  e e x
du  (e x  e x )dx x2  x x 1
r/c is added to a different r/c 2Bt ²  (2B  2C)t  ( B  C  2D)
1 x
 x3
dx  
x²
dx 
 u du  ln u  ln e  e  C
-Det. of two n n matrixes A and B is x
Which has to equal 1t ²  0t  0 , so:
the product: AB  A  B 2B  1, 2B  2C  0, B  C  2D  0 1 1 1
-A is a n n matrix and α is a real
2 x
e  e x  x x 
2   x  x² dx  ln x  x  C
B 1 , C1 , D1
2 2 2  e x  e x dx  ln e  e 1 
number, then A   n  A 1 a b  e f 
t 1
Solution: yt  A3  t ²  t  1
1 A    B   
Matrix inverses: 2 2 2 ln(e2  e2 )  ln(e1  e1)  c d  g h
n n matrix A has inverse X if:
AX  XA  I n
Dynamic stability:
Consider yt 1  byt  c
 e2  e2 
ln 
 1 1 1 1
  ln  e  e e  e    AB  
 ae  bg af  bh 

 e1  e 1   e1  e 1   ce  dg cf  dh 
Does yt converge when t   ?    
Only if A is nonsingular ( A  0 ) it can  2 1  a b   a b  0 1  5 2 
b  1 : yt  A  ct no convergence  ln(e  e1)          
and must have an inverse A 1   1 0  c 0   c 0  2 1  0 1 
Finding the inverse - row operations: (unless c=0), so unstable  k  2a  c 2b   2b a  b   5 2 
2
Construct n  2n matrix (A|I), apply
b  1 : yt  Abt 
c Compute  6 3  
 a

 b   0
 
c   0 1 
k 2
row operations to get (I|B), B  A 1 1 b
 2a  c  2b b  a   5 2 
Determining factor is b t :
4
6  6
8 16
 6   ...    
 b  c   0 1 
Finding the inverse – using cofactors:
9 27 81  a
 C11 C21 C31  c
  b  1 convergence to ; stable 2  a  0 b  2 c  1
A 1 
1 8 82 82
 C12 C22 C32  1 b     
A C  3 3 3 3 3
 13 C23 C33  b  1 no convergence ( ); unstable
Matrix on right is called adjoint of A, b  1 uniform oscillation 1 unstable 8 2
Hence a  ;k 
denoted as adj(A). Mind the r/c’s! Cobweb model: 3 3
Cramer’s Rule:
Dt    Pt  k
8
A is a square matrix and nonsingular. 2
11x1  12x2  13x3  b1 St    Pt 1  6 3   3 2  8
k 2 1
 21x1   22x2   23x3  b2  ,  ,  ,  0 3
t PDV calculations:
31x1  32x2  33x3  b3        
Pt   P0      Constant income stream of $1800 per
D j is det. of matrix where the j-th         year for next 3 years, interest = 9%/y:
   : stable    : unstable 
3
column of A has been replaced by 3  e 0.09t 
vector B.    : unstable; uniform oscillation PDV   1800e 0.09t dt  1800  
  0.09 
Time path (convergent or divergent, 0    0
D Dj
x1  1 x j 
A A monotone or oscillating):
   : divergent, oscillating, unstable

1800
0.09
 
1  e 0.27  20000(1  e0.27 )
Market equilibrium:
St  supply in period t    : convergent, oscillating, stable Constant income stream of $800 per
year for next 8 years, interest=4%/y:
ABC-formula:
Dt  demand Pt  price 8   e 0.04t 
8
ax ²  bx  c  0 PDV   800e 0.04t
dt  800  
Dt    Pt   0.04 
 b  b ²  4 ac 0    0
St    Pt 1 
 
x
800
1, 2 2a  1  e 0.32  20000(1  e0.32)
Solution: Pt  bPt 1  c 0.04
where b   /  & c  (   ) /  Examples: Constant income stream of $1400 per
1st order linear difference equations: Integration examples: year for next 4 years, interest=7%/y:
Model: yt 1  byt  c cx²  
4
 xe  e 0.07t
4
dx
PDV   1400e 0.07dt  1400  
  
Or: yt 1  yt  (b  1) yt  c u  cx² du  2cxdx 0  
0.07
 0
General (total) solution:
c
so xdx  
1
2c
du 
1400
 
1  e 0.28  20000(1  e 0.28)
yt  Abt  (b  1) 0.07
1 b cx ² 1
 xe dx   2c  e du 
u 2
yt  A  ct (b  1) Compute  f ( x)dx , where f (2)  22
1 1
If y0 is known, then:  eu  C   ecx ²  C 1
2c 2c 6
A  y0 
c
(b  1) and f ' ( x)  12 x  Solution:
1 b e x²
1  ln x
A  y0 (b  1)  x dx 6
f ( x)  6 x ² c
1 x
Linear right-hand-side coefficients:
u  1 ln x
1
du  f (2)  22  24  3  c  c  1
Model: yt 1  3 yt  2t dx

 f ( x)dx  2 x 
x 2 2
Complementary solution: A3t 1 1 3
 6 ln x  x 1 
try Bt  C for yt , then:
 udu  2 u²  C  2 (1  ln x)²  C 1
16  6 ln 2  2  (2  0  1)  15  6 ln 2
yt 1  3 yt  B(t  1)  C  3Bt  1
(1  ln x)²1e  1 (1  1)²  (1  0)²  3
2 2 2 Find the following indefinite integral:
2Bt  ( B  2C)  2t , so:
Present value of 15 annual deposits of 2x
2Bt  2t & B  2C  0
$3500; first deposit after one year,  6 x 2  7 dx
 B  1, C   1 2 annual interest 12%
n  15 A  3500 r  0.12 u  6x2  7 du  12 xdx
Solution: yt  A3t  t  1 2x 2 x du 1
3500  1 
2
P15   1    23838  6x 2  7 dx   u 12 x  6u
 du 
Non-linear right-hand-side: 0.15  1.1215 
Model: yt 1  3 yt  t ² 1 1
ln u  C  ln(6 x 2  7)  C
e  e x
2 x
6 6

t
Complementary solution: A3 Calculate dx
x x
Try Bt ²  Ct  D for yt ,then: 1 e e