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For example, while a fixed-point representation that allocates 8 decimal digits and 2 decimal places can represent the numbers 123456.78, 8765.43, 123.00, and so on, a floating-point representation with 8 decimal digits could also represent 1.2345678, 1234567.8, 0.000012345678, 12345678000000000, and so on.
This means that numbers that appear to be short and exact when written in decimal format may need to be approximated when converted to binary floating-point. For example, the decimal number 0.1 is not representable in binary floating-point of any finite precision; the exact binary representation would have a "1100" sequence continuing endlessly:
The number 123.45 can be represented as a decimal floating-point number with the integer 12345 as the significand and a 10 −2 power term, also called characteristics, [11] [12] [13] where −2 is the exponent (and 10 is the base). Its value is given by the following arithmetic: 123.45 = 12345 × 10 −2.
A decimal floating-point number can be encoded in several ways, the different ways represent different precisions, for example 100.0 is encoded as 1000×10 −1, while 100.00 is encoded as 10000×10 −2. The set of possible encodings of the same numerical value is called a cohort in the standard. If the result of a calculation is inexact the ...
The representation has a limited precision. For example, only 15 decimal digits can be represented with a 64-bit real. If a very small floating-point number is added to a large one, the result is just the large one. The small number was too small to even show up in 15 or 16 digits of resolution, and the computer effectively discards it.
A decimal data type could be implemented as either a floating-point number or as a fixed-point number. In the fixed-point case, the denominator would be set to a fixed power of ten. In the floating-point case, a variable exponent would represent the power of ten to which the mantissa of the number is multiplied.
A floating-point variable can represent a wider range of numbers than a fixed-point variable of the same bit width at the cost of precision. A signed 32-bit integer variable has a maximum value of 2 31 − 1 = 2,147,483,647, whereas an IEEE 754 32-bit base-2 floating-point variable has a maximum value of (2 − 2 −23) × 2 127 ≈ 3.4028235 ...
The standard defines five basic formats that are named for their numeric base and the number of bits used in their interchange encoding. There are three binary floating-point basic formats (encoded with 32, 64 or 128 bits) and two decimal floating-point basic formats (encoded with 64 or 128 bits).