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We are given the function $f(x) = \frac{x}{2} + \frac{2}{x}$. To find the absolute maximum and minimum values, we first need to find the critical points by taking the derivative and setting it to zero.
The derivative of $f(x)$ is: $$f'(x) = \frac{d}{dx} \left(\frac{x}{2} + \frac{2}{x}\right) = \frac{1}{2} - \frac{2}{x^2}$$
Set $f'(x) = 0$ to find the critical points: $$\frac{1}{2} - \frac{2}{x^2} = 0$$ $$\frac{1}{2} = \frac{2}{x^2}$$ $$x^2 = 4$$ $$x = \pm 2$$
Since we are considering the interval [1, 2], we only consider the critical point $x = 2$ because $x = -2$ is not in the interval.
Now, we evaluate $f(x)$ at the endpoints of the interval (1 and 2) and at the critical point $x = 2$: $$f(1) = \frac{1}{2} + \frac{2}{1} = \frac{1}{2} + 2 = \frac{5}{2} = 2.5$$ $$f(2) = \frac{2}{2} + \frac{2}{2} = 1 + 1 = 2$$
Comparing the values, we find that the absolute maximum value is $f(1) = \frac{5}{2}$ and the absolute minimum value is $f(2) = 2$.
Final Answer: Absolute maximum value: 5/2, Absolute minimum value: 2
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