This same problem exists in sound. Sound systems used to be rated in Watts (RMS), and average home stereo being 2 * 15W channels, and if you check the consumption, you'll see that the unit draws approximately 35-40W. Then some clown introduced Watts (PMPO) and I have seen USB speakers claiming 50 Watts (PMPO) output. An USB socket can only supply 2.5 Watts of Power, so PMPO figures are just bigger numbers that are essentially meaningless but attract the consumer away from another unit that may actually be better.
Hard drives are another example 2MB of hard drive does NOT = 2MB of RAM. Hard drives calculate in decimal to give 2,000,000 BYTES, where as RAM is calculated in HEXIDECIMAL to give 2,097,152 BYTES, hence you will now see CLARIFICATION of this issue as Drives will be quoted as MB but RAM will now be quoted as MiB because as we now move into TeraByte sized drives vs a TeraByte of memory the numbers get further and further apart. Under Windows, a 1TB hard drive will usually be reported as 1.8 TiB.
The same is true of Net connections being quoted in MegaBITS per second because it gives a higher number. To get MegaBYTES per second don't divide by eight, divide by TEN.
The same problem exists with LCD Monitors--21" Wow! But what's the resolution? Oh, it's only 1024 * 768. I have smaller monitors with much higher resolution.
So it is with digital still and video cameras. Instead of quoting the exact resolution e.g., 1024 * 768, they multiply them to give the megapixels i.e., 786432 which is 0.7 megapixels. To make this number look even better, some manufactures will also multiply it by 3 (each color element) giving 2359296 or 2.3 Mega-alleged-pixels.
I was never so worried about still camera resolution as I had a wonderful old HEAVY (stable) 35mm SLR with a fantastic zoom lens that could go from about 1m to 400m with excellent results. As it was stolen, I've had to go into details regarding digital cameras. You have to do your research (usually via the net) to find out the real details of resolution.
If you can't do all the calculations in the shop, get the salesperson to take a MAXIMUM resolution photo on each of the cameras that interest you, get them copied to a USB stick and compare them on your PC at home which will reveal the true resolution allowing you to decide which camera you want based on the results that you get on screen.

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