The derivative of |x| is |x|/x. Try it. It works.
See this post if anyone struggles to find the relation.
I think it would be slightly better to say that as x approaches pi*n/4 from either direction, the limit is different, so it's undefined. Derivatives are themselves defined by a limit, so in the working out you may well end up with your relation on the last row and having to take the limit as x => pi/4
It's like saying that the derivative of sin x at x=0 is undefined as you have to take the limit of sin x/x as x approaches 0 but the bottom is 0. Zero denominators, as you are probably very familiar with, don't always mean undefined limits.
Yes, it's certainly better to say what you have. But for VCE purposes (math methods in particular, I can't really speak for spesh), where limits are barely touched on, I feel it is sufficient to know that there will be no derivative when;
- there is a sharp corner
- there is a vertical inflection point
- there is a point of discontinuity (infinite, removable or jump)
I know it is important to have a wealth of knowledge and be able to comprehend the underlying principles, but for things like this I've found that with the students I have taught simplifying the material and being familiar with the above three points has yielded the best results.
Each student has their own preferences, though. So to all students, whatever you think will get you the best results, do that
