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.

39 60 75 115 135 140 149 150 234 290 340 410 600 750 750 750 1050 1100 1139 1150 1200 1200 1250 1572 1700 1825 2000

What is the maximum possible amount that could be awarded under the "2-standard deviations rule"? (Round all intermediate calculations and the answer to three decimal places.)

$1938.804 Incorrect: Your answer is incorrect. (in thousands of $)

My answer is coming wrong help, please

Answer 1

Calculation for the mean and standard deviation:

Mean = Sum of observation / Total Observations

Standard deviation = SQRT(Variance)

Variance = Sum Of Squares (SS) / n - 1, where

SS = SUM(X - Mean)².

#	X	Mean	(x - mean)2
1	39	747.148	501473.590
2	60	747.148	472172.374
3	75	747.148	451782.934
4	115	747.148	399611.094
5	135	747.148	374725.174
6	140	747.148	368628.694
7	149	747.148	357781.030
8	150	747.148	356585.734
9	234	747.148	263320.870
10	290	747.148	208984.294
11	340	747.148	165769.494
12	410	747.148	113668.774
13	600	747.148	21652.534
14	750	747.148	8.134
15	750	747.148	8.134
16	750	747.148	8.134
17	1050	747.148	91719.334
18	1100	747.148	124504.534
19	1139	747.148	153547.990
20	1150	747.148	162289.734
21	1200	747.148	205074.934
22	1200	747.148	205074.934
23	1250	747.148	252860.134
24	1572	747.148	680380.822
25	1700	747.148	907926.934
26	1825	747.148	1161764.934
27	2000	747.148	1569638.134

n	27
Sum	20173
Average	747.148
SS(Sum of squares)	9570963.407
Variance = SS/n-1	368113.977
Std Dev=Sqrt(Variance)	606.724

The Maximum that can be awarded = Average + 2 * SD = 747.148 + (2 * 606.724) = 1960.596 (Thousands of dollars)