Solution: In 1997 a woman sued a computer keyboard

Chapter 1, Problem 1.50

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In 1997 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) 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 xi 20,179, x 2 i 24,657,511. What is the maximum possible amount that could be awarded under the two-standarddeviation rule?

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