A woman sued a computer keyboard manufacturer, charging that her repetitive stre

Question

A woman sued a computer keyboard manufacturer, charging that her repetitive stress injuries were caused by the keyboard. The injury 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 two standard deviations of the mean of the awards in the 27 cases. The 27 awards were (in $1000s) 39, 65, 75, 114, 137, 142, 148, 151, 238, 290, 340, 410, 600, 750, 750, 753, 1050, 1100, 1135, 1150, 1200, 1200, 1250, 1577, 1700, 1825, and 2000, from which ,-20,189, /2 = 24,657,737. What is the maximum possible amount that could be awarded under the two-standard-deviation rule? (Round your answer to the nearest whole number) 1190 x thousand dollars

Explanation / Answer

The statistical software output for mean and standard deviation is:

Summary statistics:

Hence,

Maximum possible amount = 747.74 + 2*606.43 = 1960.6 = 1961 [Rounded off to the nearest whole number]

Column Mean Std. dev. Sum var15 747.74074 606.42709 20189

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