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Table of Contents


Preface to Volume II v
5.   Multivariable Models from Verbal Descriptions:
      Interest, NPV, SSE
741
5.1   Multivariable Functions and Models, 3-D Graphs 743
5.2   Formulating Models from Verbal Descriptions 773
5.3   Interest and Investments 809
5.4   The Time Value of Money (Present Value and Future Value)
        and Loans
837
5.5   Formulating SSE in Terms of Model Parameters 867
Summary 885

6.   Multivariate Models from Data: Regression and Statistics

893
6.1   Multivariable Models from Data - Spreadsheets and Regression 897
6.2   Mean, Variance, Standard Deviation, MSE, Misuse of Statistics 935
6.3   R2, Standard Error, Misuse of Regression, Regression
        Assumptions
969
6.4*   Investment Portfolios, Risk-Return Tradeoffs, Pareto Efficiency 997
Summary 1007

7.   Matrices and Solving Systems of Equations

1013
7.1   Introduction to Matrices and Basic Operations 1015
7.2   Matrix Multiplication 1035
7.3   Systems of Linear Equations and Augmented Matrices 1055
7.4   Matrix Equations and Inverse Matrices 1079
7.5*   Markov Chains 1103
Summary 1123

8.   Unconstrained Optimization of Multivariable Functions

1127
8.1   Rates of Change of Multivariable Functions 1129
8.2   Finding Local Extrema of Multivariable Functions 1149
8.3   Optimization using a Spreadsheet 1173
8.4   Testing for Local and Global Extrema 1199
8.5   The Method of Least Squares 1233
Summary 1263

9.   Constrained Optimization and Linear Programming

1267
9.1   Optimization with Equality Constraints: Lagrange Multipliers 1269
9.2   Solving Linear Programs Graphically 1307
9.3   The Simplex Method 1337
9.4   Linear Optimization on Spreadsheets 1361
Summary 1393



*These sections are optional and can be omitted without loss of continuity.

 
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