You are applying for jobs in the financial industry, looking for a position applying numerical methods in the field of financial modeling. An interviewer tells you about the 1982 rounding error in the Vancouver Stock Exchange's index, in which the error caused a 50 percent loss of value in 22 months. The interviewer decides to determine your knowledge of floating-point representations with a quick test. You are asked to represent the number y = 6. 59375 in a floating-point system that contains numbers of the form x = (-1)* (1. B1b2b3b4b5)2 x 2", with bị € {0, 1} and exponent m € (-4,5).
Required:
What is the absolute error \y – fl(y)] due to rounding if the floating point system rounds up (towards infinity)?
