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The "new" penny is just awful
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<p>[QUOTE="-jeffB, post: 3607133, member: 27832"]You're assuming that every total is an exact tenth, but it's not. Remember, it's not just tax rates that impose non-round numbers; it's weight-based pricing, <i>time</i>-based pricing, and even "3 for a dollar" type pricing.</p><p><br /></p><p>If prices are calculated to a tenth of a cent and then rounded, they go up 50% of the time, and down 49% of the time. If they're calculated to a hundredth of a cent, they go up 50.0 percent of the time, and down 49.9% of the time, and so on.</p><p><br /></p><p>Of course, it's <i>possible</i> that a merchant is doing everything with exact-cent prices, and that there's a systemic rounding error in the government's (or the merchant's) favor. On average, this error will be <i>one cent per transaction</i>.</p><p><br /></p><p>How much of your life are you willing to waste counting pennies in order to avoid that loathsome one-cent burden?[/QUOTE]</p><p><br /></p>
[QUOTE="-jeffB, post: 3607133, member: 27832"]You're assuming that every total is an exact tenth, but it's not. Remember, it's not just tax rates that impose non-round numbers; it's weight-based pricing, [I]time[/I]-based pricing, and even "3 for a dollar" type pricing. If prices are calculated to a tenth of a cent and then rounded, they go up 50% of the time, and down 49% of the time. If they're calculated to a hundredth of a cent, they go up 50.0 percent of the time, and down 49.9% of the time, and so on. Of course, it's [I]possible[/I] that a merchant is doing everything with exact-cent prices, and that there's a systemic rounding error in the government's (or the merchant's) favor. On average, this error will be [I]one cent per transaction[/I]. How much of your life are you willing to waste counting pennies in order to avoid that loathsome one-cent burden?[/QUOTE]
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