Optimization: First & Second Order Condition

[@misterminhas]

Doing my masters in a top 5 university and this was a better explanation than the professor gave. You sir are doing the lords work. Thank you!

[@Diagknowstics]

Thanks so much for the kind words!! Good luck with your program and feel free to share this with your classmates :)

[@g-nativesoulofficial603]

U do this for masters😢...i do its for a diploma😭

[@muhammadaufaribrahim1806]

same here, thanks a lot sirr, respect

[@nibari7771]

I haven't seen someone explaining in this way before. you are the king of explanation thank you sir

[@Diagknowstics]

Thank you so much!!

[@luiscamposgeldres8609]

Thank you so much, now I understand why the first order condition it is needed to get the variance minimum portfolio (portfolio management - finance).

[@Diagknowstics]

Thank you! Glad it was helpful!

[@杰宇-w3m]

Thank you so much for all the clear explanations !

[@Diagknowstics]

You’re welcome! Glad it helped!

[@shyamaprasadchakraborti723]

Wow! loved the explanation and examples, thank you so much 🙏

[@Diagknowstics]

Thanks for the kind words! Glad it was helpful :)

[@faribasarddinnee888]

great explanation!

[@Diagknowstics]

Thank you!

[@splinterftw]

Thank you so much for your help! You're amazing!

[@Diagknowstics]

Thank you for the kind words! :)

[@swatsk8588]

Very nice explanation. Waiting for videos on MWG topics thats there on your shelf. thanks

[@Diagknowstics]

Haha definitely :) What would you say are the most in-demand (haha, pun) topics from MWG?

[@swatsk8588]

@@Diagknowstics The explanation was so clear and that I could spot MWG, couldn’t resist the request for videos on Market failure. The diagrams are nightmare to interpret Requests: Intuition behind Profit function being • quasiconcave vis-à-vis strict quasiconvave. Why these conditions • Upper-hemi continuous Monopolist's Two-part pricing- intuition behind increasing utility of high demand customer vis-à-vis increasing utility of monopolist

[@zahraamin3905]

Very clear explanation, thank you!

[@Diagknowstics]

Glad it was helpful! :)

[@sanjayjawalkar7731]

Great explaination! But what if the second order derivative is a positive number like 2 with no x. Where do we substitute the critical point to find min Or max?

[@Diagknowstics]

Great question! If the second order derivative is a positive number with no x, that means that no matter what critical point you would have plugged in, it’s a “positive” second derivative (concave up function) and therefore any critical point you found must have been a minimum. (And if the second derivative is a negative constant, then any critical point of your function is a maximum). Hope that helps!

[@eddieyuhaozhao2050]

Thanks so much for this video!

[@Diagknowstics]

Glad it helped!

[@ihebbibani7122]

Hello , I have studied already optimization in my university but I have heard you say that we cannot say know if an extremum is a minimum or a maximum . I don't agree as in high school , if I do remember , we know that an extremum is a maximum or a minimum through the sign table that is to say that if we have an extremum point between a negative sign and a positive sign in the derivative then it's a minimum. If we have , an extremum point between a positive and a negative in the derivative then it's a maximum...

[@Diagknowstics]

@@ihebbibani7122 yes it is true that you can use the “first derivative test” (sign table) to further test if it is a max/min/neither. However, this video was about the second derivative test specifically, which is always inconclusive if the second derivative is zero (then that means you must use the first derivative test/sign table)

[@samanehmaram7933]

very useful, thanks

[@Diagknowstics]

Glad you found it helpful!

[@Invergence_x]

Best explanation ever!!!! thank you so much

[@Diagknowstics]

Thanks for the kind words!! :)

[@margaritabentov304]

Thank you. It was very helpful.

[@Diagknowstics]

Thank you!

[@lm2182]

thank you so much man

[@TlMPPA]

This was really helpful!

[@Diagknowstics]

Thank you! Glad it helped :)

[@ishitajawalkar4397]

Thank you so much!

[@Diagknowstics]

You’re welcome! :)

[@k.gomani1510]

Please add more lessons, especially for integration

[@focusingfunds]

give thanks

[@Diagknowstics]

Glad this was helpful!