PL/SQL numeric or value error: number precision too large

Question

I've got a oracle 10g PL/SQL program that I'm trying to get to run,

Program

set serveroutput on size 10000;
DECLARE
     membership varchar2(1) :='Y';
     shipping number(2,2);
     quantity number(3) :=0;
BEGIN
   if membership = 'Y' then 
      if quantity  <= 3 then
        shipping := 3.00;
      elsif quantity > 3 and quantity <= 6 then
        shipping := 5.00;
      elsif quantity > 6 and quantity <= 10 then
        shipping := 7.00;
      elsif quantity > 10 then
        shipping := 9.00;
   end if;  
   elsif membership = 'N' then
      if quantity  <= 3 then
        shipping := 5.00;
      elsif quantity > 3 and quantity <= 6 then
        shipping := 7.50;
      elsif quantity > 6 and quantity <= 10 then
        shipping := 10.00;
      elsif quantity > 10 then
        shipping := 12.00;
   end if;  
end if;
DBMS_OUTPUT.PUT_LINE(shipping);
END;

The error I keep getting. At first I thought it was just because I was assigning quantity to a number(3), so then I would compare with 003 but that didn't work either.

 Error report:
 ORA-06502: PL/SQL: numeric or value error: number precision too large
 ORA-06512: at line 8
 06502. 00000 -  "PL/SQL: numeric or value error%s"
 *Cause:    
 *Action:

Solution

Try changing shipping number(2,2) to shipping number(4,2)

(2,2) is basically saying that you want 2 digits and 2 of them are after the decimal point. So your range of values is 0 through 0.99. What you really want is "4 digits, 2 of which are after the decimal" which ranges from 0 through 99.99.