diff --git a/pymc/tests/test_data_container.py b/pymc/tests/test_data_container.py
index 6f9636cf37..4398e9f6f5 100644
--- a/pymc/tests/test_data_container.py
+++ b/pymc/tests/test_data_container.py
@@ -99,7 +99,7 @@ def test_sample_posterior_predictive_after_set_data_with_coords(self):
         with pm.Model() as model:
             x = pm.MutableData("x", [1.0, 2.0, 3.0], dims="obs_id")
             beta = pm.Normal("beta", 0, 10.0)
-            pm.Normal("obs", beta * x, np.sqrt(1e-2), observed=y, dims="obs_id")
+            pm.Normal("obs", beta * x, np.sqrt(1e-3), observed=y, dims="obs_id")
             idata = pm.sample(
                 10,
                 tune=100,