Ace the Mortgage Loan Originator Challenge 2025 – Unlock Your Dream Career!

Question: 1 / 605

What is the maximum tolerable variance for a figure with a 10% tolerance?

5%

10%

A figure with a 10% tolerance indicates that the actual variance from the expected figure can be up to 10% in either direction. This means if you have a value, the maximum acceptable amount it can deviate from that value is 10%.

For example, if a value is $100, then a tolerance of 10% means the actual amount could reasonably be as low as $90 (which is a 10% decrease) or as high as $110 (which is a 10% increase). Therefore, the maximum tolerable variance itself, concerning a 10% tolerance, is indeed that 10%. This straightforward interpretation of how tolerance works ensures that all stakeholders understand the limits of acceptable variations in financial figures.

Get further explanation with Examzify DeepDiveBeta

15%

20%

Next Question

Report this question

Download Mortgage Loan Originator (MLO) Licensing Practice Test PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy