estimate


Definition of Estimate

  • To estimate is to find a number that is close to the exact answer.

Examples 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.

Solved Example on Estimate

    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.
    Choices:
    A. $4,000
    B. $14,000
    C. $5,000
    D. $6,000
    Correct Answer: D
    Solution:
    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.

Related Terms for Estimate

  • Estimation
  • Rounding

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.