Fundamentals of

Business Math

Lecture
Introduction to Functions
Asifa Aamir
Relations
Often there are situations where the value of one variable is somehow
linked to the value of another variable.
• When the value of one variable is related to the value of a second
variable, we have a relation.
A relation is a correspondence between two sets.
• If x and y are two elements, one from each of these sets, and if a
relation exists between x and y, then we say that x corresponds to y
or that y depends on x, and we write
𝑥𝑥 → 𝑦𝑦.

Function is a special type of relation where

each input has exactly one output
Functions
Mathematically speaking
• in a function, each input value uniquely determines one output value and
• a function accepts only numbers from the domain of the function
Domain of a function is the set of possible input (independent variable) values of a function
Range of a function is the set of possible output (dependent variable) values of a function
• To state the domain and range, we can use inequalities, set builder notation or interval notation.
For example, if ℎ is the independent variable, we can represent the domain as:

One of our main goals in mathematics is to model the real world with mathematical
functions.
• In doing so, it is important to keep in mind the limitations of those models we create
• The limitations on the inputs and outputs of a function, are the domain and range of the function
Example: Domain in an Application
Expressing the volume of a cube as a function of its side length and identifying its
domain.

The formula for the volume V of a cube of side length s is 𝑉𝑉 = 𝑠𝑠 3

Using s to represent the independent variable and V to represent the dependent variable the
function expressing this relationship is 𝑉𝑉(𝑠𝑠) = 𝑠𝑠 3
• For each value of side length, s, there’s unique output for volume, V
• The domain is 𝑠𝑠 𝑠𝑠 > 0}

Other examples?!
- Revenue as a function of units sold - Salary is a function of hours worked
- Cost as a function of units produced - Total cost of pizza as a function of number of
toppings
Functions Notation
To simplify writing out expressions and equations involving functions, a simplified
notation is often used
• 𝑓𝑓 is the symbol that we usually use to denote the function
• 𝑓𝑓 𝑥𝑥 means 𝑓𝑓 is a function of 𝑥𝑥 i.e. 𝑥𝑥 determines 𝑓𝑓 𝑥𝑥
NOTE: it does not mean that 𝑓𝑓 is multiplied with 𝑥𝑥
Think of a function 𝑓𝑓 as a machine that receives as input a number from the domain, manipulates
it, and outputs a value

Use of descriptive variables helps remember the meaning of the quantities in the problem
Example: revenue is a function of units sold
• Using the variable 𝑅𝑅 to represent revenue and the variable 𝑢𝑢 to represent units sold, we may write:
𝑹𝑹(𝒖𝒖)
which is read as “R of u” or “R is a function of u”
Function Representation
A. Words
• Cost is a function of units produced
B. Tables of values
• The human population of the world 𝑃𝑃 depends on the time 𝑡𝑡. The table to
the right gives value of the world population, 𝑷𝑷(𝒕𝒕), for certain years, 𝒕𝒕
• presented with a list of input and output values
- In some cases, these values represent everything we know about the
relationship, while in other cases the table is simply providing us a few select
values from a more complete relationship.

C. Set of Values/Ordered Pairs

• {(1900, 1650), (1950, 2560), (2000, 6080)}
D. Graphs
E. Formulas
• If the side of a square is 𝑠𝑠 cm long, then the perimeter of the square is given
as 𝑃𝑃(𝑠𝑠) = 4𝑠𝑠
FYI: What is NOT a Function
Recall: Restrictions
1. It accepts only numbers from the domain of the function.
2. For each input, there is exactly one output (which may be repeated for different inputs).

Example:

• The first and second tables define functions. In

both, each input corresponds to exactly one
output.
• The third table does not define a function since
the input value of 5 corresponds with two
different output values.
Example: Determine whether the given relations are a function.
Indicate the domain in each case.
a) {(1,3), (1,8), (7,4),(8,6)}
Not a function! For 𝑥𝑥 = 1, 𝑦𝑦 values are not unique
Domain is {1, 7, 8}

a) {(3,2), (6,5), (7,7)}

It’s a function! For every 𝑥𝑥, there’s a unique 𝑦𝑦 value
Domain is {3, 6, 7}
FYI: GRAPHICALLY SPEAKING - What is NOT a Function
Vertical Line Test states that a vertical line needs to cuts the graph of a
function(equation) at only one point, for it to represent a function. If the graph of the
equation represented in the coordinate axis, is cut by the vertical line at more than one
point, then the graph is not a function.

Example: 𝑦𝑦 2 = 𝑥𝑥 + 10
This is not a function because there is a value of 𝑥𝑥 that gives more than one possible
value of 𝑦𝑦. We can show this algebraically or using the Vertical Line Test.
Example: Determine whether the given relations are a function.
i) ii)

Not a function! Function!

Fails the Vertical Line test Passes the Vertical Line test
REVIEW: Graphing
Cartesian Coordinate System is a rectangular coordinate
system with a horizontal (usually 𝑥𝑥) and a vertical (usually 𝑦𝑦) axis
• Used to describe relationships between two variables using
coordinates: (𝑥𝑥, 𝑦𝑦)
• The horizontal axis represents the independent variable, and
the vertical axis represents the dependent variable.

Independent variable (𝑥𝑥) is the one whose value are given or that
we are free to choose. The dependent variable is the one whose
value depends on the independent variable.
Summary
Evaluating a Function
We know an input and use the function to determine the
corresponding output.
• Evaluating will always produce one result, since each input of a function
corresponds to exactly one output.

Example: For 𝑓𝑓(𝑥𝑥) = 2𝑥𝑥 2 − 5𝑥𝑥, evaluate 𝑓𝑓(3)

Solution: 𝑓𝑓 𝑥𝑥 = 2𝑥𝑥 2 − 5𝑥𝑥

𝑓𝑓(3) = 2(3)2 − 5(3)
= 18 − 15
=3
Example 1: The function 𝑇𝑇(𝑥𝑥)=0.15(𝑥𝑥−8270)+827 represents the tax bill 𝑇𝑇 of a
single person whose adjusted gross income is 𝑥𝑥 dollars for income between
$8270 and $51,600, inclusive.
a) What is the domain of this linear function?
b) What is a single filer's tax bill if the adjusted gross income is $26,000?
Solving a Function
We know an output, and use the function to determine the inputs
that would produce that output
• Solving a function could produce more than one solution, since different
inputs can produce the same output.

Example:
For 𝑘𝑘 𝑡𝑡 = 𝑡𝑡 3 + 2, solve 𝑘𝑘 𝑡𝑡 = 1

Solution: 𝑘𝑘 𝑡𝑡 = 𝑡𝑡 3 + 2
1 = 𝑡𝑡 3 + 2
𝑡𝑡 3 = 1 − 2
𝑡𝑡 3 = −1
take the cube root of each side: t = −1
Solving a Function−> Finding Zero of a Function

Algebraically, a value of 𝑥𝑥 such that the function 𝑓𝑓 attains the value of 0 at 𝑥𝑥. Or
equivalently, 𝑥𝑥 is the solution to the equation 𝑓𝑓(𝑥𝑥) = 0

Graphically, the zero of a function is where the graph of the function crosses
the 𝑥𝑥‐axis. That is, the 𝑥𝑥‐intercept(s) of the graph of the function.
1
Example: Find the zero of the linear function ℎ 𝑥𝑥 = 𝑥𝑥 − 7
7
Solve for ℎ(𝑥𝑥) = 0
1
𝑥𝑥 − 7=0
7
1
𝑥𝑥 = 7
7
𝑥𝑥 = 49
Example 2: The function 𝑇𝑇(𝑥𝑥) = 0.15(𝑥𝑥 − 8270) + 827 represents the tax bill 𝑇𝑇
of a single person whose adjusted gross income is 𝑥𝑥 dollars for income between
$8270 and $51,600, inclusive. What is a single filer's adjusted gross income if the
tax bill is $3700.40?
Implicit Form of a Function
• In general, when a function f is defined by an equation in x and y, we
say that the function f is given implicitly.
• If it is possible to solve the equation for y in terms of x, then we write
𝑦𝑦 = 𝑓𝑓(𝑥𝑥)
and say that the function is given explicitly.

For example,
Implicit Form Explicit Form
2𝑥𝑥 + 𝑦𝑦 = 4 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) = −2𝑥𝑥 + 4
𝑥𝑥 2 − 𝑦𝑦 = 7 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) = 𝑥𝑥 2 − 7
5
𝑥𝑥𝑥𝑥 = 5 𝑦𝑦 = 𝑓𝑓(𝑥𝑥) =
𝑥𝑥
Equations of Line
Equations of Line
Most common ways of representing linear relationships in two variable, algebraically:
Slope-intercept form: 𝒚𝒚 = 𝒎𝒎𝒎𝒎 + 𝒃𝒃 explicit form of a function
• When graphing, start with the point at 𝑦𝑦-intercept and step to the next point using the
𝑚𝑚

Standard form: 𝑨𝑨𝑨𝑨 + 𝑩𝑩𝑩𝑩 = 𝑪𝑪 implicit form of a function

• When graphing, find the 𝑥𝑥- and the 𝑦𝑦-intercept by setting 𝑦𝑦 = 0 and 𝑥𝑥 = 0, respectively.
Slope of a line represents the rate of change and is calculated as
𝑦𝑦2 − 𝑦𝑦1
𝑚𝑚 =
𝑥𝑥2 − 𝑥𝑥1
Also known as: slope = rise/run

FYI: every vertical line is of the form 𝑥𝑥 = 𝑎𝑎 (no 𝑦𝑦 present) with an undefined slope and
every horizontal line is of the form 𝑦𝑦 = 𝑏𝑏 (no 𝑥𝑥 present) with the slope = zero.
REVIEW: To Graph a Linear Equation
• Locate the y-intercept on the graph (b value) and plot the point (0,b).
• From this point, use the slope to find a second point and plot it.
• You may find the x-intercept (set y = 0; solve for x)
• You may use any appropriate x-value (within the domain, if stated) and
find corresponding y-value.
• Draw the line that connects the two points.

Check out:
Khan Academy

[Link]
basics/alg-basics-graphing-lines-and-slope
Example 3: Write the following equation in standard and slope-intercept forms,
identify 𝑥𝑥- and 𝑦𝑦-intercepts and slope for each, and sketch its graph.
5𝑥𝑥 − 5𝑦𝑦 − 30 = 0
Linear Relationships Using Two Points

Building from slope and point:

Given two points 𝐴𝐴(𝑥𝑥1 , 𝑦𝑦1 ) and 𝐵𝐵(𝑥𝑥2 , 𝑦𝑦2 ) determine
𝑦𝑦 = 𝑚𝑚𝑚𝑚 + 𝑏𝑏 by finding 𝑚𝑚 and 𝑏𝑏: Point-Slope Form
1. Find the slope: If 𝐴𝐴(𝑥𝑥1 , 𝑦𝑦1 ) and 𝐵𝐵(𝑥𝑥2 , 𝑦𝑦2 ) are two
𝑦𝑦2 − 𝑦𝑦1 points, then the line passing
𝑚𝑚 =
𝑥𝑥2 − 𝑥𝑥1 through them can be described
2. Substitute the slope value for 𝑚𝑚 into the equation as:
𝑦𝑦 − 𝑦𝑦1 = 𝑚𝑚 𝑥𝑥 − 𝑥𝑥1
3. Substitute one of the points into the equation to
𝑦𝑦2 − 𝑦𝑦1
find 𝑏𝑏 𝑦𝑦 − 𝑦𝑦1 = 𝑥𝑥 − 𝑥𝑥1
𝑥𝑥2 − 𝑥𝑥1
4. Substitute the found values for 𝑚𝑚 and 𝑏𝑏 into
the equation 𝑦𝑦 = 𝑚𝑚𝑚𝑚 + 𝑏𝑏
Example 4: Write an equation for the line passing through the following pair of
points
(4, −1) and (−2, 6)
Give the final answer in
i. slope-intercept form and
ii. standard form. Use the smallest possible positive integer coefficient for x
when giving the equation in standard form.
Let’s Practice!
Q1
a) If 𝑓𝑓(𝑥𝑥) is a linear function, 𝑓𝑓(3) = −2 , and 𝑓𝑓(8) = 1, find the rate of change.
b) For the given graph, write the equation in slope-intercept form

Q 2: The balance in your college payment account, 𝐵𝐵, is a function of the number of quarters, q, you
attend. Interpret the function 𝐵𝐵(𝑞𝑞) = 20000 – 4000𝑞𝑞 in words. How many quarters of college can you pay
for until this account is empty?

Q 3: Suppose that the quantity supplied S and quantity demanded D of T-shirts at a concert are given by
the following functions where p is the price.
𝑆𝑆(𝑝𝑝)=−280+40𝑝𝑝 𝐷𝐷(𝑝𝑝)=800−50𝑝𝑝
a) Find the equilibrium price for the T-shirts at this concert.
b) What is the equilibrium quantity?
Extra Practice!
Q: The point at which a company's profits equal zero is called the company's break-even point. Let 𝑅𝑅
represent a company's revenue, let 𝐶𝐶 represent the company's costs, and let 𝑥𝑥 represent the number of
units produced and sold each day.
𝑅𝑅(𝑥𝑥) = 12𝑥𝑥; 𝐶𝐶(𝑥𝑥) = 6.5𝑥𝑥 + 22000
a) Find the firm's break-even point
b) Find the number of units that the company must sell to earn a profit.

Q: a) Find the equation of the line passing through (5, −9) 𝑎𝑎𝑎𝑎𝑎𝑎 (−8, −9). Identify 𝑥𝑥- and 𝑦𝑦-intercepts
and slope for slope and sketch its graph.
b) Write the given equation, 𝑦𝑦 + 5 = −3(𝑥𝑥 − −1 ) in standard and slope-intercept forms, identify 𝑥𝑥-
and 𝑦𝑦-intercepts and the slope and sketch its graph.

Q: If the cost can be calculated using 𝐶𝐶(𝑥𝑥) = 7000 + 2𝑥𝑥, determine the profit 𝑃𝑃, calculated in thousands
of dollars, if the revenue can be calculated using 𝑅𝑅(𝑥𝑥) = 10𝑥𝑥.
a) What are the domains of the cost function and the revenue function?
b) What will be the number of units produced and sold to make a profit of $2,500,000?