Definitions
In plain terms
Computers and vendors can represent decimal values differently, so exact equality may fail even when the difference is immaterial for one use case.
Technical
A tolerance policy states absolute and/or relative form, units, scale, inclusive boundary, rounding order, missing and non-finite behavior, and business justification.
Scope
Tolerance is not a license to hide unexplained errors and is never universal across fields.
Examples
- A governed dataset records numerical tolerance explicitly and preserves the source context needed to interpret it.
Common misconceptions
- Numerical Tolerance does not have one universal meaning or policy without its declared source, scope, and data contract.
Concept relationships
Prerequisites
Related
Where this concept is used
- ImportantOHLC Consistency ValidatorD01-F02-A01
- ImportantHampel Bad-Tick FilterD01-F02-A02
- ImportantMedian Absolute Deviation Outlier FilterD01-F02-A03
- ImportantCrossed/Locked Market DetectorD01-F02-A06
- ImportantPrice-Source Consensus CheckD01-F04-A03
- ImportantIndex Divisor InitializationD03-F01-A02
- ImportantIntraday Index-Level CalculationD03-F01-A05
- ImportantCapped Free-Float Market-Cap IndexD03-F02-A04
- ImportantIterative Cap RedistributionD03-F02-A07
- ImportantGroup-Level CappingD03-F02-A08
- ImportantIndex Replication-Cost EstimatorD03-F06-A08
Evidence and governance
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: preferred label, short definition, technical definition
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-26
- Next review
- 2027-07-26
- Record status
- published