Calculating Percent Error in Estimates

Mr. Mason explains how to calculate percent error by comparing an estimated value to an actual value. He introduces the formula, which involves subtracting the actual value from the estimated value, taking the absolute value, dividing by the actual value, and converting the result into a percentage. The video walks through a practical example involving a renovation project, demonstrating each step of the calculation to find a percent error of 4.5%.

What was the estimated cost of the renovation project?

• $42,000

• $43,900

• $41,500

• $44,000

What is the actual cost of the renovation project?

• $41,500

• $44,000

• $43,900

• $42,000

What does percent error help us measure?

• The accuracy of an estimate compared to the actual value

• The time taken to complete a project

• The difference between two estimates

• The total cost of a project

Which of the following is the correct formula for percent error?

• (Actual Value - Estimated Value) / Actual Value

• (Estimated Value - Actual Value) / Actual Value

• (Estimated Value - Actual Value) / Estimated Value

• (Estimated Value + Actual Value) / Actual Value

Why do we take the absolute value in the percent error formula?

• To ensure the result is always positive

• To avoid division by zero

• To simplify the calculation

• To make the result a whole number

What is the first step in calculating percent error after substituting values?

• Divide the estimated value by the actual value

• Subtract the actual value from the estimated value

• Add the values

• Multiply by 100

What is the result of subtracting the actual cost from the estimated cost?

• $1,950

• $1,890

• $2,000

• $1,800

After dividing the difference by the actual value, what is the next step?

• Divide by 100

• Subtract 100

• Multiply by 100

• Add 100

What is the decimal value obtained before converting to a percentage?

• 0.075

• 0.065

• 0.055

• 0.045

What is the final percent error calculated in the video?

• 5.5%

• 6.5%

• 4.5%

• 3.5%