Business I / Quadratic Forms
Practice question · Multiple choice

A symmetric matrix with all positive eigenvalues is positive definite. Why does that matter for a second-order condition?

Hints
  1. Ask what a saddle point looks like along two different directions.
  2. The quadratic form is the curvature in an arbitrary direction.
Show the answer

B. Because it curves upward in every direction from the point

Why

The eigenvalues are the curvatures along the principal axes. Mixed signs mean up one way and down another, a saddle, which is why the sign pattern, not the determinant alone, settles the classification.

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