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
238	290	340	410	600	750	750	750
1050	1100	1139	1150	1200	1200	1250	1574
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.)
___________ (in thousands of $)

Answer 1

from above: maximum possible amount that could be awarded under the "2-standard deviations rule" =mean+2*standard deviation =747.370+2*606.699 =1960.768