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A 3-digit instrument measures to 3 significant digits; A 4-digit instrument measures to 4 significant digits. A 3.5 digit instrument is somewhere in between. Since 0.5 is the log base 10 of 3, the display would be accurate within 3 units in the 4th digit.

At least that's what I tried to explain to a bright student in my grade 11 class. She told her engineer dad and he said it was nonsense.

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