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Sequences and Limits, Cheat Sheet of Financial Management

An overview of sequences and their properties, including definitions of increasing, decreasing, and bounded sequences. It also covers the concept of the limit of a sequence, including the cauchy definition of the limit and examples of finding limits of various sequences. Important theorems and properties related to limits, such as the linearity rule for sequences and theorems on limits of powers, logarithms, and exponential functions. Overall, this document provides a comprehensive introduction to the fundamental concepts of sequences and limits in mathematics.

Typology: Cheat Sheet

2023/2024

Uploaded on 02/05/2024

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Mathematics (12) All rights reserved Iwona Nowakowska
1
Infinite Numerical Sequences
At the beginning we will mention the definition of a function.
A function is a rule that assigns to each element ๐’™ in a set ๐‘ฟ exactly one (and
only one 1! ) element ๐’š in a set ๐’€.
Element ๐’š is often denoted by ๐’š=๐’‡(๐’™) .
A function ๐’‡ - often called a mapping - is a relation from a set ๐‘ฟ to set ๐’€ in
which no two different ordered pairs have the same first coordinates.
Def:
A function ๐’‡ (a mapping ๐’‡) from a set ๐‘ฟโŠ‚๐‘น to set ๐’€โŠ‚๐‘น is a collection of
ordered pairs (๐’™,๐’š) such that:
1) ๐’™โˆˆ๐‘ฟ ๐‘Ž๐‘›๐‘‘ ๐’šโˆˆ๐’€
2) for every ๐’™โˆˆ๐‘ฟ there exists one and only one element ๐’šโˆˆ๐’€ such that
(๐’™,๐’š)โˆˆ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡
3) for every ๐’šโˆˆ๐’€ there exists at least element ๐’™โˆˆ๐‘ฟ such that
(๐’™,๐’š)โˆˆ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡
2) if (๐’™,๐’‚)โˆˆ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡ and (๐’™,๐’ƒ)โˆˆ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡ , then ๐’‚ = ๐’ƒ
We write: ๐’‡(๐’™)โˆถ ๐‘ฟ โ†’๐’€
or:
๐’‡: ๐‘ฟ
โ†’
๐’€
๐‘ฟโˆ’ is called independent variable
๐’€โˆ’ is called dependent variable
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Infinite Numerical Sequences

At the beginning we will mention the definition of a function.

A function is a rule that assigns to each element ๐’™ in a set ๐‘ฟ exactly one (and

only one 1! ) element ๐’š in a set ๐’€.

Element ๐’š is often denoted by ๐’š = ๐’‡(๐’™).

A function ๐’‡ - often called a mapping - is a relation from a set ๐‘ฟ to set ๐’€ in

which no two different ordered pairs have the same first coordinates.

Def:

A function ๐’‡ (a mapping ๐’‡) from a set ๐‘ฟ โŠ‚ ๐‘น to set ๐’€ โŠ‚ ๐‘น is a collection of

ordered pairs (๐’™, ๐’š) such that:

2 ) for every ๐’™ โˆˆ ๐‘ฟ there exists one and only one element ๐’š โˆˆ ๐’€ such that

3 ) for every ๐’š โˆˆ ๐’€ there exists at least element ๐’™ โˆˆ ๐‘ฟ such that

2 ) if

โˆˆ ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡ and

โˆˆ ๐’ˆ๐’“๐’‚๐’‘๐’‰ ๐’‡ , then ๐’‚ = ๐’ƒ

We write:

or:

๐‘ฟ โˆ’ is called independent variable

๐’€ โˆ’ is called dependent variable

We usually consider the functions for which the sets ๐‘ฟ , ๐’€ are the sets of real

numbers.

The set ๐‘ฟ is called domain of the function.

The number ๐’š = ๐’‡(๐’™) is called the value of ๐’‡ at ๐’™ โ€“ it is read: โ€œ๐’‡ of ๐’™โ€

The set ๐’€ โ€“ is a set of all possible values of ๐’‡(๐’™).

The set ๐’€ is called co-domain of the function.

Consider the relations:

We have three different relations in the picture above.

In the picture a) and c) the relations are the functions but in the picture b) the

relation is not a function.

Remark:

If ๐’‡ is a function , we write ๐’š = ๐’‡

to say that

Remark:

We will consider the special functions at the beginning, the functions which

map natural number set ๐‘ต into another set ๐’€ (๐’€ โˆˆ ๐‘น), where ๐’€ โ€“ is a subset

of the real number set.

Numbers ๐’‚

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

, โ€ฆ are the terms of the sequence.

๐Ÿ

โˆ’ the first term

๐Ÿ

โˆ’ the second term

๐Ÿ‘

โˆ’ the third term

๐’

โˆ’ the ๐‘›

๐‘กโ„Ž

term โ€“ the general term of a sequence

Each term ๐’‚

๐’

โˆ’ will have successor ๐’‚

๐’+๐Ÿ

. We will consider infinite sequences.

Natural numbers ๐Ÿ, ๐Ÿ, ๐Ÿ‘,... , ๐’ ,... are called the indexes of the terms of the

sequence.

The sequence can be denoted by the symbol { ๐’‚

๐’

} or shortly ๐’‚

๐’

Remark:

Some sequences can be defined by giving a formula for the ๐‘›

๐‘กโ„Ž

term ๐’‚

๐’

Examples:

  1. Let the general term of the sequence be: ๐’‚

๐’

The first terms of the sequence are:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

Intuitively we can notice that the terms tend to infinity.

  1. Let the general term of the sequence be: ๐’‚

๐’

๐Ÿ

๐’

The first terms of the sequence are:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

Intuitively we can notice that the terms tend to zero (but they will never have

zero value).

The sequence with the general term ๐’‚

๐’

๐Ÿ

๐’

is called harmonic sequence.

  1. Let the general term of the sequence be: ๐’‚

๐’

๐’

๐’+๐Ÿ

First terms of the sequence are:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

Intuitively we can notice that the terms tend to one (but they will never have

value one).

  1. Let consider the sequence with the general term: ๐’‚

๐’

๐’

First terms of the sequence are:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

๐’

Intuitively we know that the terms tend to infinity.

  1. Let: ๐’‚

๐’

๐’

The sequence has terms:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

๐’

The terms alternately are positive and negative.

This is so called alternating sequence.

Alternating sequence is a sequence whose terms change sign.

For example a term ๐’‚ ๐’

is positive and the term ๐’‚

๐’+๐Ÿ

negative or vice versa.

  1. Consider the sequence with the general term: ๐’‚

๐’

๐’

๐Ÿ

๐’

This is also alternating sequence because:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

๐’

  1. Let consider the sequence: ๐’‚

๐’

= ๐Ÿ. The sequence has constant term:

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ’

๐Ÿ“

๐’

This is so called constant sequence.

๐’

= ๐’‚ where ๐’‚ โˆˆ ๐‘น, ๐’‚ โ€“ constant number

Monotone Sequences

Example:

a) Consider the sequence with the general term: ๐’‚

๐’

The first terms of the sequence are:

We can easily notice that each next term of the sequence is bigger than the

previous one.

b) Consider the sequence with the general term: ๐’‚

๐’

๐Ÿ

๐’

The first terms of the sequence are:

We can easily notice that each next term of the sequence is smaller than the

previous one.

Def:

A Sequence ๐’‚

๐’

is said to be increasing if and only if each term of the

sequence is bigger than the previous one.

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

or:

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

A Sequence ๐’‚

๐’

is said to be decreasing if and only if each term of the sequence

is smaller than the previous one.

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

or:

๐’

is decreasing โ‡”

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

A Sequence ๐’‚

๐’

is said to be nondecreasing (increasing or constant) if and

only if each term of the sequence is bigger than the previous one or exactly the

same.

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

or:

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

A Sequence ๐’‚

๐’

is said to be nonincreasing (decreasing or constant) if and

only if each term of the sequence is smaller than the previous one or exactly

the same.

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

or:

๐’

๐’+๐Ÿ

๐’

๐’โˆˆ๐‘ต

Example:

Consider the sequence with the general term: ๐’‚

๐’

๐’

๐Ÿ

๐’

๐Ÿ

+๐Ÿ

We will check if the sequence is monotone.

We must check the difference: ๐’‚

๐’+๐Ÿ

๐’

The term ๐’‚

๐’+๐Ÿ

is:

๐’

๐’

๐Ÿ

๐’

๐Ÿ

+๐Ÿ

๐’+๐Ÿ

(๐’+๐Ÿ)

๐Ÿ

๐Ÿ (๐’+๐Ÿ)

๐Ÿ

  • ๐Ÿ

๐’

๐Ÿ

+๐Ÿ๐’+๐Ÿ

๐’

๐Ÿ

+๐Ÿ๐’+๐Ÿ+๐Ÿ

๐’

๐Ÿ

+๐Ÿ๐’+๐Ÿ

๐’

๐Ÿ

+๐Ÿ๐’+๐Ÿ‘

We count the difference:

๐’+๐Ÿ

๐’

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

Hence: ๐’‚

๐’+๐Ÿ

๐’

๐ŸŽ for all ๐’ โˆˆ ๐‘ต.

It means that the sequence ๐’‚ ๐’

is increasing.

Exercise:

Determine if the sequence is increasing or decreasing or not monotonic:

๐’

๐Ÿ‘

๐’+๐Ÿ’

Solution:

๐’

๐Ÿ‘

๐’+๐Ÿ’

๐’+๐Ÿ

๐Ÿ‘

๐’+๐Ÿ+๐Ÿ’

๐Ÿ‘

๐’+๐Ÿ“

We check the difference:

๐’+๐Ÿ

๐’

๐’+๐Ÿ

๐’

< ๐ŸŽ for all ๐’ โˆˆ ๐‘ต, so the sequence ๐’‚

๐’

is decreasing

Exercise:

Determine if the sequence is increasing or decreasing or not monotonic:

๐’

๐Ÿ“

๐’

Solution:

๐’

๐Ÿ“

๐’

๐’+๐Ÿ

๐Ÿ“

๐’+๐Ÿ

We must count the difference:

๐’+๐Ÿ

๐’

๐’+๐Ÿ

๐’

< ๐ŸŽ for all ๐’ โˆˆ ๐‘ต so the sequence ๐’‚

๐’

is decreasing.

Example:

Let us consider the sequence with the main term: ๐’‚ ๐’

๐Ÿ

We begin by computing the first several terms of the sequence:

A sequence ๐’‚

๐’

๐Ÿ

is bounded below if there is a real number ๐’Ž such that

all terms of the sequence are greater or equal to this number ๐’Ž.

The number ๐’Ž = ๐Ÿ is lower bound of the sequence.

We can write:

๐’

๐Ÿ

is bounded below โ‡” because

๐’Ž=๐Ÿ

๐’โˆˆ๐‘ต

๐Ÿ

๐’

A sequence ๐’‚

๐’

is not bounded above because there is no a real number ๐‘ด

such that all terms of the sequence are less or equal to this number ๐‘ด.

Example:

Let us consider the sequence with the main term: ๐’‚

๐’

๐Ÿ

๐’

โ†’ harmonic

sequence

Some first several terms of the sequence are:

A sequence is bounded below if there is a real number ๐’Ž such that all terms of

the sequence are greater to this number ๐’Ž.

The number ๐’Ž = ๐ŸŽ is lower bound of the sequence.

At the same time, a sequence ๐’‚

๐’

is bounded above because there is a real

number ๐‘ด such that all terms of the sequence are less or equal to this number

The number ๐‘ด = ๐Ÿ is upper bound of the sequence.

So: ๐’Ž = ๐ŸŽ and ๐‘ด = ๐Ÿ.

A sequence ๐’‚

๐’

๐Ÿ

๐’

is bounded below and above so it is bounded.

We can write:

๐’

๐Ÿ

๐’

is bounded because:

๐’Ž=๐ŸŽ

๐‘ด=๐Ÿ

๐’โˆˆ๐‘ต

๐’

or analogously :

๐’

๐’Ž=๐ŸŽ ๐‘ด=๐Ÿ ๐’๐๐‘ต

๐’Ž=๐ŸŽ๐‘ด=๐Ÿ ๐’๐๐‘ต

Example:

Let us consider the sequence with the main term: ๐’‚

๐’

๐’

alternating sequence

Some first several terms of the sequence are:

A sequence is bounded below and above because there exists a real number

๐’Ž = โˆ’๐Ÿ such that all terms of the sequence are greater or equal to this

number ๐’Ž and there exists a real number ๐‘ด = ๐Ÿ such that all terms of the

sequence are smaller or equal to this number.

The number ๐’Ž = โˆ’ ๐Ÿ is lower bound of the sequence.

The number ๐‘ด = ๐Ÿ is upper bound of the sequence.

Hence:

๐’

๐’Ž=โˆ’๐Ÿ๐‘ด=๐Ÿ ๐’๐๐‘ต

Sequence is bounded.

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ

๐Ÿ‘

๐Ÿ‘

๐Ÿ’

๐Ÿ’

๐Ÿ“

๐Ÿ“

We have simple estimation:

๐’

๐’Ž=๐ŸŽ๐‘ด=๐Ÿ ๐’๐๐‘ต

The sequence is bounded.

The number ๐’Ž = ๐ŸŽ is lower bound of the sequence.

The number ๐‘ด = ๐Ÿ is upper bound of the sequence.

The limit of the sequence

The limit of the sequence is one of the most important notion in mathematics.

The basic question about a sequence ๐’‚

๐’

concerns the behavior of its ๐’

๐’•๐’‰

๐’•๐’†๐’“๐’Ž if ๐’ gets larger and larger.

Def: Cauchy definition of the limit

The sequence ๐’‚

๐’

converges to a real number ๐’‚ , ๐’‚ โˆˆ ๐‘น , if and only if for

each real number ๐œบ > ๐ŸŽ , there exists a positive integer number ๐œน , such that

for all numbers ๐’ > ๐œน , the following inequality is held:

๐’

We can write the above definition shortly:

๐’โ†’โˆž

๐’

๐œบ > ๐ŸŽ

๐œน

๐’>๐œน

๐’

We can apply the following notation:

๐’โ†’โˆž

๐’

๐’

๐’

๐’ โ†’ โˆž

Remark:

We say that the sequence ๐’‚

๐’

converges to the real number ๐’‚, or tends to the

limit a and we write ๐’๐’Š๐’Ž

๐’โ†’โˆž

๐’

= ๐’‚ if for every ๐œบ > ๐ŸŽ , there is an

integer number ๐œน such that

๐’

< ๐œบ whenever ๐’ > ๐œน.

Remark:

The points on the graph above of the ๐’‚

๐’

must lie between the horizontal lines

๐’š = ๐’‚ โˆ’ ๐œบ and ๐’š = ๐’‚ + ๐œบ if ๐’ > ๐œน.

The picture must be valid no matter how small ๐œบ is choosen, but usually a

smaller ๐œบ requires a larger ๐œน.

The sequence ๐’‚ ๐’

has a limit equal to ๐’‚ if almost all terms of the sequence

are in the neighborhood of ๐’‚ with radius epsilon ๐œบ.

/That is, a sequence ๐’‚

๐’

tends to ๐’‚ if and only if every neighborhood of ๐’‚

contains all but a finite number of terms of the sequence/.

In other words:

Sequence ๐’‚

๐’

has a limit ๐’‚ if the terms with sufficiently big indexes ๐’ differ

from the number ๐’‚ very little.

That is, a sequence {an} converges to a if and only if every neighborhood of a

contains all but a finite number of terms of the sequence

Def:

We say that the sequence ๐’‚

๐’

converges if it has a limit which is a real number.

We say the sequence ๐’‚

๐’

is convergent โ‡’ it has a limit ๐’‚ โˆˆ ๐‘น

We say that the sequence ๐’‚ ๐’

diverges if it does not converge to any real

number.

We say in this case that the sequence ๐’‚

๐’

is divergent โ‡’ a limit ๐’‚ does

not exist or is equal to +โˆž or โˆ’โˆž.

Example:

We will show using Cauchy definition that the sequence with the main term

๐’

๐Ÿ

๐’

has a limit zero , it means that:

๐’โ†’โˆž

Using Cauchy definition, we have :

๐’โ†’โˆž

๐’

๐’

๐œบ > ๐ŸŽ ๐œน ๐’>๐œน

We can write that:

๐’โ†’โˆž

๐œบ > ๐ŸŽ ๐œน ๐’>๐œน

We will solve the inequality:

Since the solution of the inequality is:

๐Ÿ

๐œบ

, hence we can assume that ๐œน =

๐Ÿ

๐œบ

Simultaneously we showed that:

๐’>๐œน=

๐Ÿ

๐œบ

๐œน=

๐Ÿ

๐œบ

๐œบ > ๐ŸŽ

It means we proved that:

๐’โ†’โˆž