Which area of calculus is relevant for business analytics?

Answer 1

The most often used parts of calculus are differentiation and infinite/finite sums. Differentiation is used extensively in microeconomic analysis to determine the effect of an increase in one variable on another- for example, how much do our costs rise if we produce one more unit? What level of production minimizes our costs?

Infinite sums (or finite sums) are used for adding up payments over time. For example, what is the present value of a series of payments we need to make to finance a project? What is the present value of revenue from a new location?

Other topics, such as limits and integration, are not often used in my experience.

Answer 2

Greetings! I have experience tutoring Business Calculus. I say the areas critical to business analytics are the profit, revenue and cost functions related to calculus. Then, there is differentiation to describe the rate of change in a business.