How Should Significant Figures Be Handled in Repeated Calculations?

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return42
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I have a question regarding significant figures. I understand the notion well, but am having trouble putting it into practice. My main question is: let's say you divide two numbers of 3 sf each. The result from the calculator is long so you round it to 3 sf. If you need to re-use that result in a later calculation, do you

(a) use the 3 sf rounded figure,
(b) use the number with one additional sf (so 4 sf even though it won't show on paper), or
(c) use the exact same number you got from the calculator (containing up to 10 sf, also won't show on paper) ?
 
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c is the most correct approach. b is not bad, although 1 additional digit (called guard digit) is sometimes not enough, 2 or 3 are much better. a is completely wrong.
 
Ah OK thanks. Just to make sure, you never actually write the full number used on paper right?
 
No, even when you are reporting some intermediate results you should round them down.

Note that significant figures - although worshiped by some - are just an approximate way of dealing with precision. While listing all possible digits doesn't make sense, relying too heavily on significant figures is about as wrong.