Chapter 7
Additional
Integration
Topics
7.1. Area Between Two Curves
Negative Values for the Definite Integral
If f (x) is positive for some values of x on [a, b] and negative
for others, then the definite integral
b y = f (x)
a
f ( x) dx
is the cumulative sum of the signed a B
areas between the graph of f (x) and A b
the x axis. Areas above the x axis are
positive, and areas below are negative.
In this section we want find the
(unsigned) actual area between a curve b
and the x axis or between two curves. a
f ( x) dx = − A + B
This is never negative!
2
Negative Values
The (unsigned) area between the
graph of a negative function and the
x axis is equal to the definite
integral of the negative of the y = f (x)
function.
a B
b
A= a
[ − f ( x) ] dx A b c
c
B= b
f ( x) dx
3
Area Between Curve and x axis
▪ The area between f (x) and the x axis can be found as
follows:
▪ For f (x) 0 over [a, b] (i.e. f (x) is above the x axis):
b
Area = a
f ( x) dx
▪ For f (x) 0 over [a, b] (i.e. f (x) is below the x axis):
b
Area = a
[ − f ( x) ] dx
4
Area Between Two Curves
Theorem 1. If f (x) g(x) over the interval [a, b], then the
area bounded by y = f (x) and y = g(x) for a x b is given by
f ( x) − g ( x) dx
b
A=
a
f (x)
A
g (x)
a b
5
Example
Find the area bounded by
y = x2 – 1 and y = 3
Note the two curves intersect at –2 and 2, and y = 3 is the larger
function on –2 x 2.
2
A= −2
− −1 ) dx
2
3 (x
2 32
= (3x – x / 3 + x) −2
3
= 10.67
3
6
Application:
Income Distribution
The U.S. Bureau of the Census compiles
data on distribution of income among
families. This data can be fitted to a curve
using regression analysis. This curve is
called a Lorenz curve.
The variable x represents the cumulative
percentage of families at or below the given
income level. The variable y represents the
cumulative percentage of total family
income received.
If we have absolute equality of income (every family has the same
income), the Lorenz curve is y = x.
7
Application
(continued)
If we have absolute inequality of income (one family has all
the income, the rest have none), the Lorenz curve is y(x) = 0
for x < 1, y(1) = 1.
The maximum possible area between the Lorenz curve and the
line y = x is ½, which occurs in the case of absolute inequality.
That is, the area between the Lorenz curve and the line
y = x is between 0 and ½.
The Gini Index is two times the area between the Lorenz
curve and the line y = x. It can take on values between 0 and 1.
8
Application
(continued)
Gini Index of Income Concentration
If y = f (x) is the Lorenz curve, then
x − f ( x) dx
1
Index of income concentration = 2
0
A measure of 0 indicates absolute equality. A measure of 1
indicates absolute inequality.
9
Example
A country is planning changes in tax structure in order to
provide a more equitable distribution of income.
The two Lorenz curves are:
f (x) = x2.3 currently, and
g(x) = 0.4x + 0.6x2 proposed.
Will the proposed changes work?
10
Example
(continue)
Currently: Gini Index of income concentration =
1 x 2
x 3.3
1
2 [ x − x ] dx = 2
2.3
− | = 0.3939
0
2 3.3 0
Future: Gini Index of income concentration =
1
2 0
[ x − (0.4 x + 0.6 x 2 ] dx
0.6 x 2 0.6 x 3 1
= 2 − | = 0.20
2 3 0
The Gini index is decreasing, so the future distribution will be
more equitable.
11
7.2. Applications in
Business/Economics
▪ Probability Density Functions
A probability density function must
satisfy:
1. f (x) 0 for all x
2. The area under the graph of f (x) is 1
3. If [c, d] is a subinterval then
d
Probability (c x d) = c
f ( x) dx
12
Example
In a certain city, the daily use of water in hundreds of gallons
per household is a continuous random variable with
probability density function
f ( x) = .15 e −.15 x if x 0. Otherwise f ( x) = 0
Find the probability that a household chosen at random will
use between 300 and 600 gallons.
6
Probabilit y (3 x 6) = .15 e − 0.15 x dx
3
− .15 x 6
=− e | 3
= - e – 0.9 + e - 0.45 0.23
13
Insight
The probability that a household in the previous example uses
exactly 300 gallons is given by:
3
Probabilit y (3 x 3) = .15 e − 0.15 x dx = 0
3
In fact, for any continuous random variable x with
probability density function f (x), the probability that x is
exactly equal to a constant c is equal to 0.
14
Applications in
Business/Economics
▪ Continuous Income Stream
Total Income for a Continuous Income Stream:
If f (t) is the rate of flow of a continuous income stream,
the total income produced during the time period from t = a
to t = b is
b
Total income = f (t ) dt
a
15
Example
Find the total income produced by a continuous income
stream in the first 2 years if the rate of flow is
f (t) = 600 e 0.06t
2
Total income = 600 e 0.06t dt
0
= 10 ,000 e 0 .06t 2
0
= 10 ,000 (e0 .12 – 1 )
$1,275
16
Applications in
Business/Economics
Future Value of a Continuous Income Stream
From previous work we are familiar with the continuous
compound interest formula
A = Pert
If f (t) is the rate of flow of a continuous income stream,
0 t T, and if the income is continuously invested at a rate r
compounded continuously, the the future value FV at the end of
T years is given by
T T
r (T − t )
FV = f (t ) e dt = e rT
f (t ) e −r t dt
0 0
17
Example
Let’s continue the previous example where
f (t) = 600 e0.06 t
Find the future value in 2 years at a rate of 10%.
r = 0.10, T = 2, f (t) = 600 e 0.06t
T
FV = e f (t ) e −r t dt
rT
0
2
=e 600 e 0.06t e − 0.10t dt
0.10 ( 2 )
0
2
= 600 e e −0.04t dt
0.2
0
= (600) (1.22140) (1.92209) = 1,408.59
18
Consumers’ Surplus
( x , p)
x
CS = [ D( x) − p ]dx
0
19
Example
20
Producers’ Surplus
x
p = PS = [ p − S ( x)]dx
0
21
Example
22