In 1997 a woman sued a computer keyboard manufacturer,charging that her repetitive stress injuries werecaused by the keyboard (Genessy v. Digital EquipmentCorp.). The injury awarded about $3.5 million for painand suffering, but the court then set aside that awardas being unreasonable compensation. In making this determination, the court identified a “normative” group of27 similar cases and specified a reasonable award as onewithin two standard deviations of the mean of the awardsin the 27 cases. The 27 awards were (in $1000s) 37, 60,75, 115, 135, 140, 149, 150, 238, 290, 340, 410, 600, 750,750, 750, 1050, 1100, 1139, 1150, 1200, 1200, 1250,1576, 1700, 1825, and 2000, from which oxi 5 20,179,oxi2 5 24,657,511. What is the maximum possibleamount that could be awarded under the two- standarddeviationrule?
In 1997 a woman sued a computer keyboard manufacturer,
charging that her repetitive stress injuries were
caused by the keyboard (Genessy v. Digital Equipment
Corp.). 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
in the 27 cases. The 27 awards were (in $1000s) 37, 60,
75, 115, 135, 140, 149, 150, 238, 290, 340, 410, 600, 750,
750, 750, 1050, 1100, 1139, 1150, 1200, 1200, 1250,
1576, 1700, 1825, and 2000, from which oxi 5 20,179,
oxi
2 5 24,657,511. What is the maximum possible
amount that could be awarded under the two- standarddeviation
rule?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 4 images
