Dear Marina,
Ignoring the big-O notation for a moment, the first derivative is equal to . Setting this to zero and solving for , you obtain the optimal choice for (as I explained above, the first order optimality condition holds even though the function is strictly speaking not convex).
Best,
Thomas
Ignoring the big-O notation for a moment, the first derivative is equal to . Setting this to zero and solving for , you obtain the optimal choice for (as I explained above, the first order optimality condition holds even though the function is strictly speaking not convex).
Best,
Thomas