Explanation: Rounding errors can occur for various reasons, but the most relevant option among the provided choices is (1) When you use multiplication, division, or exponentiation in a formula. Rounding errors can occur in calculations involving multiplication, division, or exponentiation due to the way computers represent and process numbers. Computers use a finite number of bits to represent numbers, which can lead to imprecise representations of certain decimal values. When performing calculations involving multiplication, division, or exponentiation, intermediate results may contain more decimal places than can be accurately represented. As a result, rounding errors can occur when these results are rounded to the desired number of decimal places.