12.9:  Applications of Extrema of Functions of Two Variables

1.	To find maximum or minimum points, you must not only test critical points, but also consider values of the function at points on the boundary.

Applications of extrema in economics and business often involve more than one independent variable.

2.	Developing mathematical models that represent particular phenomenon is a huge goal of mathematics.  The goal is to make an accurate yet simple model.  Of course, these often conflict.  The method of least squares is a linear model based upon given data.

Theorem 12.18:  Least Squares Regression Line

	The least squares regression line for is given by 		f(x) = ax + b, where 

  and