Definition of Estimate
To estimate is to find a number that is close to the exact answer.
Example of Estimate
A pen costs $4.15. Estimate the cost of 5 such pens.
$4.15 is closer to $4 than $5. So, the cost of 5 such pens would be about $20.
Video Examples: Estimating Sums and Differences
Solved Example on Estimate
Ques: Tim and his wife together earn $9,635 and spend $4,385 every month. Estimate the amount of money they save every month to the nearest thousand.
Correct Answer: D
Step 1: Tim and his wife together earn $9,635 and spend $4,385 every month.
Step 2: $9,635 rounded to the nearest thousand is $10,000.
Step 3: $4,385 rounded to the nearest thousand is $4,000.
Step 4: The amount they save every month
= 10,000 – 4,000 = 6,000.
Step 5: So, Tim and his wife save about $6,000 every month.
Real-world Connections for Estimate
Many companies use estimating techniques to find out the cost of buying materials or machineries, the cost involved in manufacturing goods, etc. The process of estimation gives them a fair idea of the amount to be invested.