Significant Figures Allow Us to Estimate Uncertainty in Calculated Values $\times$

question 74

Essay

Significant figures allow us to estimate uncertainty in calculated values.In some circumstances,following significant figure rules can lead to estimates of uncertainty that are too high or low.This is the case for the mathematical expression below.
99 $\times$ 1.02 = 100.98
Following the rules governing significant figures in multiplication,the answer can be rounded to 1.0 $\times$ 10².What is wrong with rounding this answer to two significant figures?

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Definitions:

Interest Income

The income earned from lending funds or investing in interest-bearing financial instruments, such as saving accounts, bonds, or loans.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs related to production.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, keeping all other inputs constant.