Bunuel
Example:
5.3485 rounded to the nearest tenth = 5.3, since the dropped 4 is less than 5.
5.3485 rounded to the nearest hundredth = 5.35, since the dropped 8 is greater than 5.
5.3485 rounded to the nearest thousandth = 5.349, since the dropped 5 is equal to 5.
Bunuel,
I'm slightly confused by your explanation and the GC Math Book. IMO, in example 1 regardless of the fact that you should round to the nearest tenth, you should always start backwards, basically that the ten-thousandth makes the 8 become a 9, then this thousandth changes the 4 to a 5, and finally the 5 transforms the tenth in a 4. At least that is the rule I have studied in primary school. I don't argue that your rule may be the one applicable on the GMAT, but nevertheless, I would be glad to hear your take on this. Thank you!