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 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, ∑x2i = 24,657,511 . What is the maximum possible amount that could be awarded under the twostandard-deviation rule?
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