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ACT® · Math: Statistics and Probability — Describing Data

Rounding and Appropriate Precision in Reported Data

A reported number is only as precise as its rounding allows: the real value could be anywhere within half a unit of what's printed. More decimal places on a summary statistic don't mean more accuracy, and rounding several numbers separately can make a percentage table stop adding to 100.

A news report saying the average family has 2.3 children isn't claiming any family has a fractional kid. It's reporting an average, a sum divided by a count, and averages don't have to land on whole numbers even when every individual case does. The .3 is honest information about the whole group, not a measurement of one family.

Separately, when a single number is rounded, that rounding sets a boundary on what the true value could have been. If a population is reported as 4.2 million rounded to the nearest hundred thousand, the true value could be anything from 4.15 million up to (but not including) 4.25 million. Writing 4.200000 million would look more precise without being any more true. Precision is about how fine the rounding unit was, not how many digits you bother to write down.

This connects to two-way tables and percentage breakdowns elsewhere in data description. When several related values, like the rows of a percentage table, are each rounded independently before being reported, their individual rounding errors don't cancel out. Each row can be off by up to half a percentage point, and those small errors can stack so the column adds to 99 or 101 instead of 100. Recognizing that pattern means you don't panic over a table that's 'off' by a point or two, and you don't try to force every rounded value to be exact when the real quantity was fractional all along.

Key terms

Rounding unit
The place value a number is rounded to, such as the nearest hundred thousand or nearest tenth.
True value range
The interval of exact values that could all round to the same reported number.
Precision
How fine the rounding unit is, which limits how much detail a reported number can honestly claim.
Accumulated rounding error
The buildup of small individual rounding errors across several values in the same table or sum.

Watch it explained

  1. How it worksHow does the rounding in a reported summary decide how much precision that number can honestly claim?
  2. Common mistakeWhy isn't writing more decimal places the same thing as making a measurement more accurate?
  3. Worked exampleFind the range of true values behind a population reported as 4.2 million, rounded to the nearest hundred thousand.
  4. Going furtherWhat happens to a percentage table when every row is rounded to a whole number and the column stops totalling 100?

Check yourself

Your turneasy1 of 3
A population is reported as 51 hundred thousand, rounded to the nearest hundred thousand. Find the largest possible true population, in hundred thousands.

End of topic.