Question

An investor predicts that next month, 1 ton of coal will cost $53.00, with a 3% margin of error. Based on the prediction, what is the range of possible costs, in dollars per ton, for the coal?

Answer 1

"Cost would be between $51.41 and $54.59"

Explanation:

3% margin of error means that the cost can be

• 3% lower, or
• 3% higher

First we need to find 3% of $53 and then we will "add" and "subtract" from $53 to get the range of values of cost.

To get 3% of $53, we need to convert the percentage to decimal and multiply with $53. To get percentage to decimal, we divide by 100, so we have:

3/100 = 0.03

Now,

0.03 * 53 = $1.59

The range would be:

$53 + $1.59 = $54.59

and

$53 - $1.59 = $51.41

Cost would be between $51.41 and $54.59