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AI SL · 12.2

Finance

12.2.4

Rounding and percentage error

12.2.4

Rounding and percentage error

Target: Round to decimal places and significant figures; choose a sensible accuracy (+3 more)

By the end of this section

Key points

Rounding

  • Decimal places count digits after the decimal point. Significant figures count from the first digit that is not zero.
  • Give answers to 3 significant figures unless the question says otherwise. Money goes to the cent.
  • Keep the full value on the calculator and round only at the end.

Bounds

  • A rounded number stands for a range. 6.3 to 1 decimal place means \(6.25 \le x < 6.35\): half of the last place either side.
  • Adding and multiplying: biggest with biggest, smallest with smallest.
  • Subtracting and dividing: for the biggest answer take the upper bound of the first and the lower bound of the second.

Percentage error

  • \(\text{percentage error} = \left|\frac{\text{approximate} - \text{true}}{\text{true}}\right| \times 100\)
  • Always divide by the true value. The answer is never negative.

Worked examples

Problems like the ones in class. Pick one, try it, then open the working.
AI SL Finance and approximation slides · L05
A vegetable plot: bounds and percentage error

A rectangular vegetable plot measures 12.4 m by 7.8 m, each measured to the nearest 0.1 m. (a) Write down the lower and upper bounds of the length. (b) Find the upper bound of the area. (c) Leila estimates the area by rounding each length to the nearest metre. Taking 12.4 m by 7.8 m as the true dimensions, find the percentage error in her estimate.

Working
  1. (a)

    12.35 m and 12.45 m

    Half of 0.1 m either side of 12.4 m.

  2. (b)

    12.45 × 7.85 = 97.7325

    Upper bound of the length times upper bound of the width: 97.7 m².

  3. (c) Estimate and true value

    Estimate 12 × 8 = 96 m². True 12.4 × 7.8 = 96.72 m²

    Round each length to the nearest metre for her estimate.

  4. (c) Percentage error

    |96 − 96.72| ÷ 96.72 × 100 = 0.744%

    The difference, over the true value, times 100.

Video walkthrough coming
Decimal places and significant figures

Write 0.040862 correct to (a) 2 decimal places and (b) 3 significant figures.

Working
  1. (a)

    \(0.04\)

    Two digits after the point. The next digit is 0, so it stays.

  2. (b)

    \(0.0409\)

    The first significant figure is the 4. Three of them are 4, 0, 8, and the next digit, 6, rounds the 8 up.

Video walkthrough coming
What could it have been?

\(x = 6.3\) to one decimal place. Write down an inequality for the possible values of \(x\).

Working
  1. Either side

    6.2 and 6.4 are the next values to one decimal place.

    Halfway to each is where the rounding changes.

  2. The range

    \(6.25 \le x < 6.35\)

    6.25 rounds up to 6.3, so it is included. 6.35 rounds up to 6.4, so it is not.

Video walkthrough coming
The fastest it could be

A sprinter runs 120 m, measured to the nearest 10 m, in 14 s, measured to the nearest second. Find the upper bound of the average speed.

Working
  1. The bounds

    \(115 \le d < 125\) and \(13.5 \le t < 14.5\)

    Half of 10 m and half of 1 s either side.

  2. Biggest speed

    \(\frac{125}{13.5} = 9.259\ldots\)

    Speed is distance ÷ time. For the biggest answer, take the biggest distance and the smallest time.

  3. Answer

    \(9.26\) m/s

    To 3 significant figures.

Video walkthrough coming
How good is the estimate?

Find the percentage error in using 3.16 as an estimate of \(\sqrt{10}\).

Working
  1. The formula

    \(\left|\frac{3.16 - \sqrt{10}}{\sqrt{10}}\right| \times 100\)

    The true value is \(\sqrt{10}\), from the calculator.

  2. Answer

    \(0.0720\%\)

    Three significant figures: 7, 2, 0.

Video walkthrough coming
The largest the error could be

The side of a square is 8 cm to the nearest centimetre. Find the maximum percentage error in the area if 8 cm is used.

Working
  1. Bounds for the side

    \(7.5 \le s < 8.5\)

    Half a centimetre either side of 8.

  2. Bounds for the area

    \(56.25 \le A < 72.25\)

    Square each bound. The area used is \(8^2 = 64\).

  3. Test each end

    \(\left|\frac{64 - 56.25}{56.25}\right| \times 100 = 13.8\%\) and \(\left|\frac{64 - 72.25}{72.25}\right| \times 100 = 11.4\%\)

    The true area could be at either end.

  4. Answer

    \(13.8\%\)

    The larger of the two.

Video walkthrough coming
Bounds through Pythagoras

A rectangular gate is 2.4 m wide and 1.1 m high, each measured to the nearest 0.1 m. A brace is fixed along its diagonal. (a) Find the upper bound of the length of the diagonal, to 3 significant figures. (b) A piece of timber is exactly 2.7 m long. Is it certain to be long enough for the brace?

Working
  1. Upper bounds of the sides

    2.45 m and 1.15 m

    Half of 0.1 m more than each measurement. The longest diagonal comes from the longest sides.

  2. (a)

    \(\sqrt{2.45^2 + 1.15^2} = 2.7065\ldots\)

    The diagonal is less than 2.71 m, to 3 significant figures.

  3. (b)

    2.7065… > 2.7

    No. The diagonal could be longer than 2.7 m, so the timber is not certain to be long enough.

Video walkthrough coming
The largest possible volume

A cylindrical candle has radius 3.2 cm and height 11.5 cm, each measured to 1 decimal place. Find the largest possible volume of the candle, to 3 significant figures. Use \(V = \pi r^2 h\).

Working
  1. Upper bounds

    \(r < 3.25\) and \(h < 11.55\)

    Half of 0.1 cm more than each measurement.

  2. Largest volume

    \(\pi \times 3.25^2 \times 11.55 = 383.26\ldots\)

    Multiplying: biggest with biggest. Put the bounds into the formula, not the measured values.

  3. Answer

    \(383\) cm³

    The measured values give 370 cm³, so rounding could hide about 13 cm³.

Video walkthrough coming
Working back from a percentage error

A kitchen scale gives readings with a percentage error of 4%. (a) A bag of flour has a true mass of 2.5 kg. Find the least and the greatest reading the scale could give. (b) The scale reads 5.2 kg for a bag of rice, and this reading is too high. Find the true mass of the rice.

Working
  1. (a) The size of the error

    4% of 2.5 = 0.1 kg

    Percentage error is measured against the true value.

  2. (a)

    2.5 − 0.1 = 2.4 kg and 2.5 + 0.1 = 2.6 kg

    The reading is between 2.4 kg and 2.6 kg.

  3. (b) Reading and true mass

    reading = 1.04 × true mass

    Too high by 4% of the true mass, which is not known yet.

  4. (b)

    5.2 ÷ 1.04 = 5 kg

    Check: 4% of 5 is 0.2, and 5 + 0.2 = 5.2.

Video walkthrough coming
Is an estimate good enough?

A school buys 38 calculators at £11.80 each. The bursar estimates the cost by rounding 38 to the nearest ten and £11.80 to the nearest pound. (a) Find the estimate. (b) State whether it is an overestimate or an underestimate. (c) Find the percentage error in the estimate. (d) Explain why an estimate is appropriate here.

Working
  1. (a)

    40 × 12 = 480

    38 rounds to 40 and £11.80 rounds to £12. The estimate is £480.

  2. (b)

    38 × 11.80 = 448.40

    The true cost is £448.40. The estimate is more than this, so it is an overestimate. Both numbers were rounded up.

  3. (c)

    \(\left|\frac{480 - 448.40}{448.40}\right| \times 100 = 7.047\ldots\)

    7.05%, to 3 significant figures.

  4. (d)

    The bursar only needs a rough figure to plan a budget. A small error does no harm, and an overestimate means enough money is set aside. An estimate is not appropriate where a small error could cause harm, such as the dose of a medicine.

Video walkthrough coming

Step by step

Worked examples as class slides: one to a page, built up a step at a time.