Question: if 400 ohm of resistance is made by adding four 100 ohm resistance of tolerance 5%,

then the tolerance of the combination is (a)20 (b)5 (c)10 (d)15%

Answer: The tolerance of the combination
100 5% 100 5% 100 5% 100 5%
100
100 100 100 100

= 5%
Tolerance is the percentage of error in the resistor's resistance, or how much more or
less you can expect a resistor's actual measured resistance to be from its stated
resistance.
So if there is 5 % error in each resistance when we take out the total relative error by
dividing by total magnitude we get the new error as 5 % of 400 ohm.