Rounding errors occur when numbers are approximated to make calculations simpler. For example, if you round 2.7 to 3, the difference between the actual value and the rounded value is a rounding error. These errors can accumulate in calculations, especially in long sequences of operations, leading to significant discrepancies in results. In fields like finance and engineering, rounding errors can impact decision-making and design. To minimize these errors, professionals often use specific rounding rules or maintain more decimal places during calculations before rounding the final result. Understanding rounding errors is essential for accuracy in various applications.