Consider the following one-dimensional problem: This is a concave problem, since the leading term in the quadratic
Question:
Consider the following one-dimensional problem:
This is a concave problem, since the leading term in the quadratic objective is negative, so that the second-order derivative is negative everywhere. In Fig. 15.5, we show the objective function and the feasible set. The stationarity point x = 2 is of no use to us, since it is a maximizer. We see that local minimizers are located at the boundary of the feasible set. A local minimizer lies at the left boundary, x = 1, and the global minimizer is located at the right boundary, x = 4.
Data From Fig 15.5
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
An Introduction To Financial Markets A Quantitative Approach
ISBN: 9781118014776
1st Edition
Authors: Paolo Brandimarte
Question Posted: