For example, 00.10 would be .5 decimal, 00.01 would be .25 decimal, then .125, and so on.
The US Navy, realizing that all their technical types used calculators with built-in bin-dec-oct-hex functions went to using the above on their tests to make sure the techs actually had a clue about the binary numbering system.
And if we want to go even further into binary we can look at the representation of negative numbers (twos complement). Seems we're starting to drift though
You're thinking of sign bit notation. Twos complement is used so that mathematical operations (binary arithmetic) still works with positive and negative numbers. It also elimenates the two possible representations of zero.
Basically, you invert the bits (take the ones complement) and add 1.