Rounding is a process of minimizing numbers while keeping their value. It involves deciding which numbers to keep based on whether the number is less than 5, in which case it is left the same, or exactly 5 or above, when it is rounded up or 1 is added. Five is used as the threshold because it is in the middle and represents having enough members on a team to not lose a game. When reading decimals, the decimal point signifies "and" to state the place value of each digit.