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About the Cover
For Mark van der Laan, the beauty of mathematical problems and the journeys he takes on the
road to solving them are the driving force behind his work in the field of biostatistics. In particular,
he is intrigued by the variety of approaches there may be to solve a problem and the fact that it
requires a large diversity of scientists and people working in the field to find the most elegant and
satisfying solutions. As he moved from an M.A. in mathematics to a Ph.D. in mathematical statistics
from the University of Utrecht to his current position in the Department of Biostatistics at the
University of California, Berkeley, Mark has found that the most interesting and creative mathemati-
cal problems are present in real-life applications. He says, “I have always realized, and have been
told by experienced researchers, that solving these applied problems requires a thorough education
in mathematics and that probability theory is fundamental. However, as in real life, the approach
taken toward the solution is often by far the most important step and requires philosophical and
abstract thinking.”
MARK VAN DER LAAN
Every day Mark is engaged in creatively solving mathematical problems that have implications Biostatistician
in the fields of medical research, biology, and public health. For example, in collaboration with
medical researchers at the University of California, San Francisco, Mark is investigating the effects
of antiretroviral treatment (ART) on HIV/AIDS progression. As represented by the images on the cover, he is also involved in estab-
lishing the causal effect of air pollution on asthma in children, the causal effect of leisure-time activity and lean-to-fat ratio on health
outcomes in the elderly, as well as the identification of regulatory networks in basic biology.

Recognized for his progressive work in these fields, Mark van der Laan has received numerous awards. In April 2005, he was
awarded the van Dantzig Award for his theoretical and practical contributions made to the fields of operation research and statistics.
In August 2005, he received the COPSS (Committee of Presidents of Statistical Societies) Award, which is presented annually to a
young researcher in recognition of outstanding contributions to the statistics profession. Mark currently holds the UC Berkeley
Chancellor Endowed Chair 2005–2008, as well as the long-term Jiann-Ping Hsu/Karl E. Peace Endowed Chair in Biostatistics at
University of California, Berkeley.

Look for other featured applied researchers in forthcoming titles in the Tan applied mathematics series:

PETER BLAIR HENRY CHRIS SHANNON JONATHAN D. FARLEY NAVIN KHANEJA

International Economist Mathematical Economist Applied Mathematician Applied Scientist
Stanford University University of California, California Institute of Harvard University
Berkeley Technology
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EDITION
APPLIED
5 MATHEMATICS
FOR THE MANAGERIAL, LIFE,
AND SOCIAL SCIENCES

SOO T. TAN
STONEHILL COLLEGE

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
 Applied Mathematics: For the Managerial, ©2010, 2007 Brooks/Cole, Cengage Learning
Life, and Social Sciences, Fifth Edition
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Printed in Canada
1 2 3 4 5 6 7 12 11 10 09 08
TO PAT, BILL, AND MICHAEL
This page intentionally left blank
 CONTENTS

Preface xi

CHAPTER 1 Fundamentals of Algebra 1

1.1 Real Numbers 2
1.2 Polynomials 7
1.3 Factoring Polynomials 14
1.4 Rational Expressions 20
1.5 Integral Exponents 26
1.6 Solving Equations 30
1.7 Rational Exponents and Radicals 36
1.8 Quadratic Equations 44
1.9 Inequalities and Absolute Value 53
Chapter 1 Summary of Principal Formulas and Terms 62
Chapter 1 Concept Review Questions 63
Chapter 1 Review Exercises 63
Chapter 1 Before Moving On 65

CHAPTER 2 Functions and Their Graphs 67

2.1 The Cartesian Coordinate System and Straight Lines 68
2.2 Equations of Lines 74
Using Technology: Graphing a Straight Line 84
2.3 Functions and Their Graphs 87
Using Technology: Graphing a Function 100
2.4 The Algebra of Functions 103
2.5 Linear Functions 111
PORTFOLIO: Esteban Silva 115
Using Technology: Linear Functions 120
2.6 Quadratic Functions 123
PORTFOLIO: Deb Farace 128
Using Technology: Finding the Points of Intersection of Two Graphs 132
2.7 Functions and Mathematical Models 134
Using Technology: Constructing Mathematical Models from Raw Data 144
Chapter 2 Summary of Principal Formulas and Terms 148
Chapter 2 Concept Review Questions 149
Chapter 2 Review Exercises 149
Chapter 2 Before Moving On 151
vi CONTENTS

CHAPTER 3 Exponential and Logarithmic Functions 153

3.1 Exponential Functions 154
Using Technology 160
3.2 Logarithmic Functions 162
3.3 Exponential Functions as Mathematical Models 171
Using Technology: Analyzing Mathematical Models 180
Chapter 3 Summary of Principal Formulas and Terms 181
Chapter 3 Concept Review Questions 182
Chapter 3 Review Exercises 182
Chapter 3 Before Moving On 183

CHAPTER 4 Mathematics of Finance 185

4.1 Compound Interest 186
Using Technology: Finding the Accumulated Amount of an Investment, the Effective Rate
of Interest, and the Present Value of an Investment 201
4.2 Annuities 204
Using Technology: Finding the Amount of an Annuity 212
4.3 Amortization and Sinking Funds 215
Using Technology: Amortizing a Loan 225
4.4 Arithmetic and Geometric Progressions 228
Chapter 4 Summary of Principal Formulas and Terms 236
Chapter 4 Concept Review Questions 237
Chapter 4 Review Exercises 238
Chapter 4 Before Moving On 239

CHAPTER 5 Systems of Linear Equations and Matrices 241

5.1 Systems of Linear Equations: An Introduction 242
5.2 Systems of Linear Equations: Unique Solutions 249
Using Technology: Systems of Linear Equations: Unique Solutions 263
5.3 Systems of Linear Equations: Underdetermined and Overdetermined Systems 265
Using Technology: Systems of Linear Equations: Underdetermined and Overdetermined
Systems 274
5.4 Matrices 275
Using Technology: Matrix Operations 284
5.5 Multiplication of Matrices 287
Using Technology: Matrix Multiplication 299
5.6 The Inverse of a Square Matrix 301
Using Technology: Finding the Inverse of a Square Matrix 313
Chapter 5 Summary of Principal Formulas and Terms 316
Chapter 5 Concept Review Questions 316
Chapter 5 Review Exercises 317
Chapter 5 Before Moving On 319
 CONTENTS vii

CHAPTER 6 Linear Programming 321

6.1 Graphing Systems of Linear Inequalities in Two Variables 322
6.2 Linear Programming Problems 330
6.3 Graphical Solution of Linear Programming Problems 338
6.4 The Simplex Method: Standard Maximization Problems 351
PORTFOLIO: Morgan Wilson 352
Using Technology: The Simplex Method: Solving Maximization Problems 372
6.5 The Simplex Method: Standard Minimization Problems 376
Using Technology: The Simplex Method: Solving Minimization Problems 387
Chapter 6 Summary of Principal Terms 390
Chapter 6 Concept Review Questions 390
Chapter 6 Review Exercises 391
Chapter 6 Before Moving On 393

CHAPTER 7 Sets and Probability 395

7.1 Sets and Set Operations 396
7.2 The Number of Elements in a Finite Set 405
7.3 The Multiplication Principle 411
PORTFOLIO: Stephanie Molina 413
7.4 Permutations and Combinations 417
Using Technology: Evaluating n!, P(n, r), and C(n, r) 430
7.5 Experiments, Sample Spaces, and Events 431
7.6 Definition of Probability 439
7.7 Rules of Probability 449
PORTFOLIO: Todd Good 451
Chapter 7 Summary of Principal Formulas and Terms 459
Chapter 7 Concept Review Questions 460
Chapter 7 Review Exercises 460
Chapter 7 Before Moving On 462

CHAPTER 8 Additional Topics in Probability 463

8.1 Use of Counting Techniques in Probability 464
8.2 Conditional Probability and Independent Events 471
8.3 Bayes’ Theorem 485
8.4 Distributions of Random Variables 494
Using Technology: Graphing a Histogram 502
8.5 Expected Value 504
PORTFOLIO: Ann-Marie Martz 510
8.6 Variance and Standard Deviation 516
Using Technology: Finding the Mean and Standard Deviation 527
Chapter 8 Summary of Principal Formulas and Terms 528
Chapter 8 Concept Review Questions 529
Chapter 8 Review Exercises 530
Chapter 8 Before Moving On 531
viii CONTENTS

CHAPTER 9 The Derivative 533

9.1 Limits 534
Using Technology: Finding the Limit of a Function 552
9.2 One-Sided Limits and Continuity 554
Using Technology: Finding the Points of Discontinuity of a Function 568
9.3 The Derivative 570
Using Technology: Graphing a Function and Its Tangent Line 586
9.4 Basic Rules of Differentiation 589
Using Technology: Finding the Rate of Change of a Function 600
9.5 The Product and Quotient Rules; Higher-Order Derivatives 602
Using Technology: The Product and Quotient Rules 615
9.6 The Chain Rule 618
Using Technology: Finding the Derivative of a Composite Function 629
9.7 Differentiation of Exponential and Logarithmic Functions 630
Using Technology 640
9.8 Marginal Functions in Economics 642
PORTFOLIO: Richard Mizak 647
Chapter 9 Summary of Principal Formulas and Terms 651
Chapter 9 Concept Review Questions 653
Chapter 9 Review Exercises 653
Chapter 9 Before Moving On 656

CHAPTER 10 Applications of the Derivative 657

10.1 Applications of the First Derivative 658
Using Technology: Using the First Derivative to Analyze a Function 675
10.2 Applications of the Second Derivative 678
Using Technology: Finding the Inflection Points of a Function 695
10.3 Curve Sketching 697
Using Technology: Analyzing the Properties of a Function 709
10.4 Optimization I 711
Using Technology: Finding the Absolute Extrema of a Function 724
10.5 Optimization II 726
PORTFOLIO: Gary Li 731
Chapter 10 Summary of Principal Terms 738
Chapter 10 Concept Review Questions 738
Chapter 10 Review Exercises 738
Chapter 10 Before Moving On 740

CHAPTER 11 Integration 741

11.1 Antiderivatives and the Rules of Integration 742
11.2 Integration by Substitution 755
11.3 Area and the Definite Integral 765
11.4 The Fundamental Theorem of Calculus 774
Using Technology: Evaluating Definite Integrals 784
 CONTENTS ix

11.5 Evaluating Definite Integrals 785

Using Technology: Evaluating Definite Integrals for Piecewise-Defined Functions 795
11.6 Area between Two Curves 797
Using Technology: Finding the Area between Two Curves 807
11.7 Applications of the Definite Integral to Business and Economics 808
Using Technology: Business and Economic Applications/Technology Exercises 820
Chapter 11 Summary of Principal Formulas and Terms 821
Chapter 11 Concept Review Questions 822
Chapter 11 Review Exercises 823
Chapter 11 Before Moving On 826

CHAPTER 12 Calculus of Several Variables 827

12.1 Functions of Several Variables 828
12.2 Partial Derivatives 837
Using Technology: Finding Partial Derivatives at a Given Point 849
12.3 Maxima and Minima of Functions of Several Variables 850
PORTFOLIO: Kirk Hoiberg 852
Chapter 12 Summary of Principal Terms 860
Chapter 12 Concept Review Questions 860
Chapter 12 Review Exercises 861
Chapter 12 Before Moving On 862

Answers to Odd-Numbered Exercises 863

Index 915
How-To Technology Index 920
This page intentionally left blank
PREFACE

M ath is an integral part of our increasingly complex daily life. Applied Mathematics
for the Managerial, Life, and Social Sciences, Fifth Edition, attempts to illustrate this point
with its applied approach to mathematics. Our objective for this Fifth Edition is threefold:
(1) to write an applied text that motivates students while providing the background in the
quantitative techniques necessary to better understand and appreciate the courses normally
taken in undergraduate training, (2) to lay the foundation for more advanced courses, such
as statistics and operations research, and (3) to make the text a useful tool for instructors.
Since the book contains more than enough material for the usual two-semester or
three-semester course, the instructor may be flexible in choosing the topics most suitable
for his or her course. The following chart on chapter dependency is provided to help the
instructor design a course that is most suitable for the intended audience.

1 2 3 7
Fundamentals Functions and Exponential and Sets and
of Algebra Their Graphs Logarithmic Probability
Functions

4 5 9 8
Mathematics Systems of The Derivative Additional Topics
of Finance Linear Equations in Probability
and Matrices

6 10
Linear Program- Applications
ming of the
Derivative

11 12
Integration Calculus of
Several Variables
xii PREFACE

THE APPROACH
Level of Presentation
My approach is intuitive, and I state the results informally. However, I have taken special care
to ensure that this approach does not compromise the mathematical content and accuracy.

Problem-Solving Approach
A problem-solving approach is stressed throughout the book. Numerous examples and
applications illustrate each new concept and result. Special emphasis is placed on helping
students formulate, solve, and interpret the results of the problems involving applications.
Because students often have difficulty setting up and solving word problems, extra care
has been taken to help students master these skills:
■ Very early on in the text students are given practice in solving word problems (see
Example 7, Section 1.8).
■ Guidelines are given to help students formulate and solve word problems (see Section
2.7).
■ One entire section is devoted to modeling and setting up linear programming problems
(see Section 6.2).
■ Optimization problems are covered in two sections. In Section 10.4 students are asked
to solve problems in which the objective function to be optimized is given, and in Sec-
tion 10.5 students are asked to solve problems in which the optimization problems must
first be formulated.

Intuitive Introduction to Concepts

Mathematical concepts are introduced with concrete, real-life examples wherever appro-
priate. An illustrative list of some of the topics introduced in this manner follows:
■ The algebra of functions: The U.S. Budget Deficit
■ Mathematical modeling: Social Security Trust Fund Assets
■ Limits: The Motion of a Maglev
■ The chain rule: The Population of Americans Age 55 and Older
■ Increasing and decreasing functions: The Fuel Economy of a Car
■ Concavity: U.S. and World Population Growth
■ Inflection points: The Point of Diminishing Returns
■ Curve sketching: The Dow Jones Industrial Average on “Black Monday”
■ Exponential functions: Income Distribution of American Families
■ Area between two curves: Petroleum Saved with Conservation Measures

Connections
One example (the maglev) is used as a common thread throughout the development of cal-
culus—from limits through integration. The goal here is to show students the connections
between the concepts presented—limits, continuity, rates of change, the derivative, the
definite integral, and so on.

Motivation
Illustrating the practical value of mathematics in applied areas is an important objective of
my approach. Many of the applications are based on mathematical models (functions) that
I have constructed using data drawn from various sources, including current newspapers,
magazines, and the Internet. Sources are given in the text for these applied problems.
 PREFACE xiii

Modeling
I believe that one of the important skills that a student should acquire is the ability to trans-
late a real problem into a mathematical model that can provide insight into the problem.
In Section 2.7, the modeling process is discussed, and students are asked to use models
(functions) constructed from real-life data to answer questions. Students get hands-on
experience constructing these models in the Using Technology sections.

NEW TO THIS EDITION

Algebra Review Where EXAMPLE 6 Evaluate:
Students Need It Most
11 ⫹ h ⫺ 1
Well-placed algebra review notes, lim
hS0 h
keyed to the early algebra review
chapters, appear where students often Solution Letting h approach zero, we obtain the indeterminate form 0/0. Next,
need help in the calculus portion of the we rationalize the numerator of the quotient by multiplying both the numerator
and the denominator by the expression 1 11 ⫹ h ⫹ 12 , obtaining
text. These are indicated by the (x )
2

icon. See this feature in action on 11 ⫹ h ⫺ 1 1 11 ⫹ h ⫺ 12 1 11 ⫹ h ⫹ 12

⫽ * (x ) See page 41.
2

pages 542 and 577. h h1 11 ⫹ h ⫹ 12

1⫹h⫺1
⫽ 1 1a ⫺ 1b 2 1 1a ⫹ 1b 2 ⫽ a ⫺ b
h1 11 ⫹ h ⫹ 12
h
⫽
h1 11 ⫹ h ⫹ 12
1
⫽
11 ⫹ h ⫹ 1

Motivating Real-World APPLIED EXAMPLE 1 Global Warming The increase in carbon diox-
Applications ide (CO2) in the atmosphere is a major cause of global warming. The
Keeling curve, named after Charles David Keeling, a professor at Scripps Institu-
More than 220 new applications have tion of Oceanography, gives the average amount of CO2, measured in parts per
been added to the Applied Examples million volume (ppmv), in the atmosphere from the beginning of 1958 through
and Exercises. Among these 2007. Even though data were available for every year in this time interval, we’ll
applications are global warming, construct the curve based only on the following randomly selected data points.
depletion of Social Security trust fund
assets, driving costs for a 2008 Year 1958 1970 1974 1978 1985 1991 1998 2003 2007
medium-sized sedan, hedge fund Amount 315 325 330 335 345 355 365 375 380
investments, mobile instant messaging
accounts, hiring lobbyists, Web The scatter plot associated with these data is shown in Figure 54a. A mathemati-
conferencing, the autistic brain, the cal model giving the approximate amount of CO2 in the atmosphere during this
revenue of Polo Ralph Lauren, U.S. period is given by
health-care IT spending, and A(t) ⫽ 0.010716t 2 ⫹ 0.8212t ⫹ 313.4 (1 ⱕ t ⱕ 50)
consumption of bottled water.
xiv PREFACE

Modeling with Data 40. INTERNET USERS IN CHINA The number of Internet users in
Modeling with Data exercises are China is projected to be
now found in many of the Using
N(t) ⫽ 94.5e0.2t (1 ⱕ t ⱕ 6)
Technology sections throughout
the text. Students can actually see where N(t) is measured in millions
14. MODELING andDtATA
WITH is measured
The numberin of Internet users in
how some of the functions found years, with t ⫽ 1 corresponding
China (in to the beginning
millions) of 2005.
from the beginning of 2005 through
in the exercises are constructed. a. How many Internet 2010
usersare
were thereinat the
shown the following
beginningtable:
of
(See Internet Users in China, 2005? At the beginning of 2006?
Exercise 40, page 159, and the b. How many Internet users are there expected to be at the
corresponding exercise where the beginning of 2010? Year 2005 2006 2007 2008 2009 2010
Number
c. Sketch the graph of N. 116.1 141.9 169.0 209.0 258.1 314.8
model is derived in Exercise 14,
page 161.) Source: C. E. Unterberg
a. Use ExpReg to find an exponential regression model
for the data. Let t ⫽ 1 correspond to the beginning of
2005.
Hint: a x ⫽ e x ln a.
b. Plot the scatter diagram and the graph of the function f
found in part (a).

Making Connections APPLIED EXAMPLE 2 Market for Cholesterol-Reducing Drugs In

with Technology a study conducted in early 2000, experts projected a rise in the market for
cholesterol-reducing drugs. The U.S. market (in billions of dollars) for such drugs
Many Using Technology sections from 1999 through 2004 is approximated by
have been updated. A new exam-
ple—Market for Cholesterol- M(t) ⫽ 1.95t ⫹ 12.19
Reducing Drugs—has been added where t is measured in years, with t ⫽ 0 corresponding to 1999.
to Using Technology 2.5. Using a. Plot the graph of the function M in the viewing window [0, 5] ⫻ [0, 25].
Technology 3.3 includes a new b. Assuming that the projection held and the trend continued, what was the mar-
example in which an exponential ket for cholesterol-reducing drugs in 2005 (t ⫽ 6)?
model is constructed—Internet APPLIED EXAMPLE 1 Internet Gaming Sales The estimated growth
c. What was the rate of increase of the market for cholesterol-reducing drugs
Gaming Sales—using the logistic in global Internet-gaming revenue (in billions of dollars), as predicted by
over the period in question?
industry analysts, is given in the following table:
function of a graphing utility. Source: S. G. Cowen
Another new example—TV
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mobile Phones—has been added
to Using Technology 10.3. Addi- Revenue 3.1 3.9 5.6 8.0 11.8 15.2 18.2 20.4 22.7 24.5
tional graphing calculator screens
in some sections and Exploring a. Use Logistic to find a regression model for the data. Let t ⫽ 0 correspond to
with Technology examples illus- 2001.
trating the use of the graphing b. Plot the scatter diagram and the graph of the function f found in part (a) using
calculator to solve inequalities the viewing window [0, 9] ⫻ [0, 30].
and to generate random numbers Source: Christiansen Capital/Advisors
have been added throughout.
 PREFACE xv

Variety of Problem 2.3 Concept Questions

Types 1. a. What is a function? c. d.
y y
Additional rote questions, true b. What is the domain of a function? The range of a function?
c. What is an independent variable? A dependent variable?
or false questions, and concept
2. a. What is the graph of a function? Use a drawing to illus-
questions have been added trate the graph, the domain, and the range of a function.
throughout the text to enhance b. If you are given a curve in the xy-plane, how can you tell x
0
if the graph is that of a function f defined by y ⫽ f(x)?
the exercise sets. (See, for 0
x
3. Are the following graphs of functions? Explain.
example, the graphical questions a. b.
added to Concept Questions 2.3, y y
4. What are the domain and range of the function f with the
page 95.) following graph?
y

4
x x 3
0 0
2

1
(2, 12 )
x
1 2 3 4 5

Action-Oriented
Study Tabs
Convenient color-coded study
tabs, similar to Post-it® flags,
make it easy for students to tab
pages that they want to return to
later, whether it be for
additional review, exam
preparation, online exploration,
or identifying a topic to be
discussed with the instructor.
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