The Market Analyst

Topic: Increasing/Decreasing Functions (8.1)
Analyst Name:
Date:
📊 Scenario: You are analyzing the stock price of a new Tech Startup. An "Increasing Function" means the company is Growing (Profit). A "Decreasing Function" means the company is Losing Value (Loss).
PART 1: THE GROWTH PHASE (8.1)

The Model: The stock price \( P(t) \) (in dollars) at month \( t \) is:

\[ P(t) = 2t^3 - 9t^2 + 12t + 5 \quad \text{for } 0 \le t \le 4 \]
🤖 AI Assistant Task: Prompt your AI: "Plot the graph of y = 2x^3 - 9x^2 + 12x + 5 from x=0 to 4. Just describe the shape: when does it go up and when does it go down?"

1. According to the AI (or your visual check), between which months was the stock price dropping?


👮 Mathematical Proof (The "Audit"):

Investors don't trust pictures; they trust Calculus. The function is decreasing when \( P'(t) < 0 \).

2. Find the derivative \( P'(t) \):

3. Set up the inequality \( P'(t) < 0 \) and solve for \( t \) (factorize the quadratic):

4. Conclusion: The company lost value between Month _____ and Month _____.

PART 2: THE "STAGNANT" MARKET

Sometimes markets don't move. Consider the function \( y = x^3 \).

1. Find \( \frac{dy}{dx} \):

2. Is this function always increasing? Calculate \( \frac{dy}{dx} \) when \( x = -2 \) and \( x = 2 \).

3. Critical Thinking: At \( x=0 \), the gradient is 0. Does this mean the function stops increasing? Explain.

The Turning Points

Topic: Stationary Points (8.2)
🛑 Scenario: In business, the most important moments are the Turning Points. Mathematically, these are Stationary Points where \( f'(x) = 0 \).
PART 3: FINDING THE PEAK

The Function: \( y = x^3 - 3x^2 - 9x + 10 \)

Step 1: Locate them.

Find \( \frac{dy}{dx} \) and solve \( \frac{dy}{dx} = 0 \).

Stationary points are at \( x = \) ____ and \( x = \) ____.

Step 2: Classify them (Nature).

Find the Second Derivative \( \frac{d^2y}{dx^2} \).

Test your \( x \) values:

Conclusion:

The Maximum point is at \( (\_\_\_, \_\_\_) \) because \( f''(x) \) was (Positive/Negative).

The Minimum point is at \( (\_\_\_, \_\_\_) \) because \( f''(x) \) was (Positive/Negative).

🧠 AI CHALLENGE: The "Impossible" Request

Your Mission: You want to trick the AI. You will ask it to find stationary points for a function that doesn't have any.

1. The Function: Consider \( y = x^3 + 3x + 5 \).

2. Manual Check: Try to find where \( \frac{dy}{dx} = 0 \).

(Hint: Look at the resulting equation. Can \( 3x^2 + 3 = 0 \) ever be true for real numbers?)

3. AI Verification: Ask the AI: "Find the stationary points of y = x^3 + 3x + 5."

4. Report: What did the AI say? Did it agree with your manual check?

Reflective Summary: Increasing functions have \( f'(x) > 0 \). Stationary points have \( f'(x) = 0 \). To distinguish Max from Min, we check the sign of \( f''(x) \).