Question

A trader gave a change of 500 instead of 400. Find the percentage error

Answer 1

To find the percentage error in this situation, we can use the formula for percentage error:

\[
\text{Percentage Error} = \left( \frac{\text{Actual Value} - \text{Expected Value}}{\text{Expected Value}} \right) \times 100
\]

In this case:

- **Actual Value** (the change given by the trader) is 500.
- **Expected Value** (the correct change that should be given) is 400.

Now, substituting these values into the formula:

\[
\text{Percentage Error} = \left( \frac{500 - 400}{400} \right) \times 100
\]

Calculating the error:

\[
\text{Percentage Error} = \left( \frac{100}{400} \right) \times 100 = 0.25 \times 100 = 25\%
\]

Thus, the percentage error is **25%**.