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E-TRADE TOGETHER GLOBAL ACADEMY

Numerical Methods

Level 6 · Numerical Methods · Prerequisites: Courses 2.2 and 2.4 · Connects to Simulation, Control and AI

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9 canonical classes · 5 laboratories · 4 module assessments · computational project · final

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MODULE 1

Numerical error & root finding

Represent finite computation, quantify error and solve nonlinear equations with visible convergence evidence.

Dependencies: Courses 2.2 and 2.4; preceding classes where applicable.

6.1.1 · v1 · 90 minutes

Floating-point computation

Why it matters

Scientific software stores a finite approximation to real numbers; understanding that representation prevents silent computational error.

Prerequisites

Courses 2.2 and 2.4; earlier canonical classes where applicable.

Concept and explanation

A floating-point value has finite precision. Most decimal fractions are not represented exactly, so arithmetic is rounded after operations. Accuracy concerns closeness to a reference; precision concerns resolution or repeatability.

Key terms

floating point; significand; exponent; machine precision; overflow; underflow; cancellation; tolerance

Notation / representation

Use ≈ for approximation. A comparison |a−b|≤atol+rtol|b| combines absolute and relative tolerance.

Numerical method / algorithm

Represent → compute → inspect scale → compare with tolerance → reformulate if cancellation or range threatens the result.

Mathematical development

For x=1 and a small δ, subtracting nearly equal rounded quantities can erase significant digits. Relative error |x−x̂|/|x| is scale-aware when x≠0.

Learning objectives

  • Explain finite binary representation, rounding, overflow and underflow.
  • Use tolerances and stable reformulations instead of inappropriate exact equality.

Worked examples

Worked example 1

Mathematical problem · given · goal: Explain why 0.1+0.2 may not equal 0.3 exactly in binary floating point.

Method · assumptions · algorithm · computation: The inputs are rounded binary approximations; compare the computed sum with 0.3 using a declared tolerance.

Result · error/residual · validation · interpretation · limitations: The tiny discrepancy is representation error, not evidence that real-number addition changed.

Worked example 2

Mathematical problem · given · goal: Evaluate (sqrt(1+x)−1)/x for very small positive x.

Method · assumptions · algorithm · computation: Rationalize to 1/(sqrt(1+x)+1), avoiding subtraction of nearly equal numbers.

Result · error/residual · validation · interpretation · limitations: Both formulas are mathematically equal, but the rationalized form is numerically more stable and approaches 1/2.

Common mistake and counterexample

Incorrect: more printed digits guarantee accuracy. Printed precision cannot repair model error, poor data, cancellation or an ill-conditioned problem.

Guided practice

  1. Rebuild Worked Example 1 and record every approximation, parameter, error or residual.
  2. Change one input, predict the effect, recompute and validate independently.

A/B/C/D practice

A · Foundation

Classify roundoff, overflow, underflow and cancellation examples.

B · Application

Design a scale-aware equality test.

C · Reasoning and error detection

Diagnose a cancellation-prone formula.

D · Challenge / transfer

Reformulate and validate a computation across several scales.

Knowledge check and summary

  1. State whether the result is exact or approximate.
  2. Record the method, parameters and stopping criterion.
  3. Estimate error or residual and interpret it.
  4. Validate with an independent method or known case.

Mastery criterion: 4/4 correct, including exact-versus-approximate distinction, error/residual and independent validation. Correct each miss and complete a fresh equivalent check.

Related laboratory

Next class: Numerical error