Formula to Calculate Percent Error

In Science-related matters, the percentage error formula is often used wherein determines the variance between the experimental value and the exact value. This calculation will help us compare a value derived from the experiment with an exact or true value. The percentage error also provides information on how close one is in their measurement or their estimation of the true or the real value.

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Steps to Calculate Percent Error

Examples

Example #1

A new tourist place, the Statue of Unity, was recently established in Gujarat, India. They estimated that around 3,00,000 people would turn around on its inauguration day. But the number of people that came for its inauguration was around 2,88,000. So, you are required to calculate the percentage error.Below is given data for the calculation of the percent error.

  • The first must obtain the experiment (assumed) and exact values. Find the variance between them and then take the absolute value; one needs to ignore any negative sign. It is known as the error. Next, find out the absolute value of the exact or true value. Divide the absolute error (non-negative), determined in Step 2, by the absolute true value or the exact value. Finally, multiply the result obtained in step 4 by 100 so that the result converts into a percent value, and then add a “%” symbol to the result.

Therefore, the calculation of the percent error will be as follows:

=(300000-288000)/288000*100

Percent Error will be –

Percentage Error= 4.17%

Example #2

Avenue Supermarket, a retail company operating under the name “Dmart,” is in an expansion phase, and the company plans to open new branches in new cities. The company planned and estimated to open 24 branches at the start of the financial year. However, by the end of the year, the company opened only 21 stores. As a result, the company has approached you to calculate the percentage error they made during initial planning.

Below is given data for calculation of Percent Error

Therefore, calculation of the Percent Error will be as follows,

=(24-21)/21*100

Percentage Error= 14.29%

Example #3

As per a poll by a news channel during an election campaign, they estimated that XYZ party would win 278 seats out of 350 seats. After the results came out, it turned out that the XYZ party managed to win 299 seats out of 350 seats. The news channel is perplexed by the actual outcome and wants to know what margin error they made and how much they lagged. Calculate the percentage error.

Below is given data for the calculation of Percent Error.

Percentage Error=-7.02%

This article has been a guide to Percent Error Formula. Here, we learn how to calculate percent error using its formula with practical examples and a downloadable Excel template. You can learn more about financing from the following articles: –

Uses of Percent Error Formula

The percent error appears to be a simple calculation, but it is very useful as it provides us with a number that will depict our error. Further, it is used whenever it is crucial to know the amount of error which is present in the data, and it is necessary to know the reason for the error, whether the reason is due to by equipment impairment or by one’s own error or mistake in the assumptions or estimations.

  • Margin of ErrorMultiplier FormulaPercent Change in ExcelFormula of Confidence IntervalAPR vs APY