In 1997 a woman sued a computer keyboard manufacturer, charging that her repetit

Question

In 1997 a woman sued a computer keyboard manufacturer, charging that her repetitive stress injuries were caused by the keyboard (Genessey v. Digital Equipment Corporation). The jury awarded about $3.5 million for pain and suffering, but the court then set aside that award as being unreasonable compensation. In making this determination, the court identified a "normative" group of 27 similar cases and specified a reasonable award as one within 2 standard deviations of the mean of the awards in the 27 cases. The 27 award amounts (in thousands of dollars) are in the table below. 31 60 75 115 135 140 149 150 236 290 340 410 600 750 750 750 1050 1100 1139 1150 1200 1200 1250 1576 1700 1825 2000 What is the maximum possible amount that could be awarded under the "2-standard deviations rule? (Ron 1978.173 (in thousands of $) intermediate calculations and the answer to three decimal places.)

Explanation / Answer

mean = 747.0741, std.dev = 607.2296

Max.amount = mean + 2 * std.dev

= 747.0741 + 2 * 607.2296

= 1961.533

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