Question

A woman sued a computer keyboard manufacturer, charging that her repetitive stress injuries were caused by the keyboard. 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.

33	60	75	115	135	140	149	150
232	290	340	410	600	750	750	750
1,050	1,100	1,139	1,150	1,200	1,200	1,250	1,574
1,700	1,825	2,000

What is the maximum possible amount (in thousands of dollars) that could be awarded under the "2-standard deviations rule"? (Round your answer to three decimal places.)

Answer 1

from above:

2-standard deviations above value from the mean =746.926 +2*607.164 =1961.254