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I suspect you mean "rounded to the nearest hundredth".
One hundredth is 0.01. So you want to round to the second digit after the decimal point.
In this case it would be 1.96 because you consider the third digit after the decimal point to change the second one, here 2 is less than 5.
Hence 1.962 is closer to 1.96 than it is to 1.97.
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