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 elow. 35 60 75 115 135 140 149 150 232 290 340 410 600 750 750 750 1050 1100 1139 1150 1200 1200 1250 1574 1700 1825 2000 tions and the answer to three decimal What is the maximum possible amount that could be awarded under the "2-standard deviations rule"? (Round all intermediate calcula (in thousands of $)

Explanation / Answer

MAXIMUM POSSIBLE AMOUNT=MEAN+2STDDEV

using R below code:

Awardamt <- c(35,60,75,115,135,140,149,150,232,290,340,410,600,750,750,750,1050,1100,
1139,1150,1200,1200,1250,1574,1700,1825,2000)
print(Awardamt)
mean(Awardamt)
sd(Awardamt)

mean=747

Sd=607.0738

maximum amount=mean+2sd

=747+2*607.0738

= 1961.148

ANSWER: 1961.148

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