The Wisconsin State Court system wants to assess the impact that punitive damages have on large tort awards. Using the court system’s computer, 16 cases were selected at random from all those cases in which damages of $ 1 million or more were awarded. The sample revealed the following about the punitive damages in these cases:
Mean = $ 74,000 Standard deviation = $ 55,000
Place a 99% confidence limit around your best estimate of the punitive damages for this type of case. One concern is that punitive damages for these cases might be in excess of $ 100,000. Present a hypothesis and a null hypothesis, and evaluate your hypotheses. Finish with a conclusion that a judge could understand.