Hi there. Metric Mastery ES several times; MM coach from way back in 2012-13. Great question. Here's my take (and it agrees with the wise teacher who chimed in).
Regardless of what unit they are asking for (centimeter, nanometer, gigameter!), identify the smallest unit on the analog tool in which ALL values are represented by a line. On most classroom rulers, it's mm. You'll want to estimate exactly one digit beyond mm. So, that would be a 0.1 mm. , Convert to whatever, keeping the same number of digits and precision - basically, just move the decimal point (or change the exponent if your kiddos are comfortable with scientific notation).
So, in your example, you say that the students are asking for how long the paperclip is in cm, and they are given your typical classroom ruler with a mark for every mm. They line the left end of the paperclip with the zero of the paperclip and then read the length. They see that the paperclip is between 3 and 4 cm. They count the little lines between them and see that the paperclip is about 3.4 cm. According to the event rules, they are to estimate exactly one digit beyond mm. They think its closer to 3.4 cm than it is to 3.5 cm. So, maybe 3.42 cm. There's a good amount of wiggle room in the scoring, so they don't have to worry estimating it differently than the ES did when making the answer key.
If the station asked for the length in mm, it would be 34.2 mm. If it asked for the length in m, it would be 0.0342 m. Or, it's 0.0000342 km, 0.342 dm.
Incorrect answers would include:
3.4 cm (one too few digits)
3.426 cm (one too many digits)
3.42 (if the unit is not provided on the answer sheet, you better write it down)
3.89 cm (correct number of digits, but estimate too far from actual, perhaps because student didn't line up the zero on ruler correctly).
Bottom line: You won't get any measurement points if you don't give the right precision when using an analog instrument for a direct measurement.
I hope this helps.
Kelly
PS. I think the rules are unclear on how to handle calculated values like area of triangle, volume of a cubic solid, density of a rock, etc. They give one example in 4.d.iii (which is corrected on soinc) which appears to follow sig fig rules, though soinc's sig fig policy expressly states that Metric Mastery students are not responsible for sig figs. So when I make answer keys, I give some leeway in number of digits by figuring out what is reasonable considering the tool used (and it could be two tools: a digital scale with a graduated cylinder for density). So in the example given in the rules (student uses a typical ruler to get measurements to the 0.01 cm), a student finds two sides of a rectangle to be 13.45 cm and 22.32 cm. The rules give this area to be "300.2 cm^2" which follows sig fig rules. However, students punching these numbers into their calculators will get 300.204 cm^2. I will allow 0.1 cm^2 to 0.001 cm^2 precision for that answer. I want to allow answers that are sensible and mark wrong those that are insanely off target!