Why am I getting "value larger than specified precision allowed for this column"?

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The following SQL produces this error when tried on SQL Fiddle for an Oracle database.

ORA-01438: value larger than specified precision allowed for this column

CREATE TABLE fruit
(
  cost NUMBER(4,2) NOT NULL
);
INSERT INTO fruit VALUES ('400.00');

Isn't inserting 400.00 allowed, considering that according to the Oracle documentation, that 400.00 is less than 4 digits before the decimal point and two digits after it?

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