How to perform operations on numbers with tolerances?

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If I have 1±0.04 + 1±0.04 what would the tolerance of that equal?

What if we change it for a - or * or /?

I read somewhere that you should square the tolerances, add them together and then square root them. Which doesn't make sense because if I have the highest possible of each and add those together it wouldn't be within range of that answer.