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Law, Probability and Risk Advance Access originally published online on March 4, 2009
Law, Probability and Risk 2009 8(2):125-131; doi:10.1093/lpr/mgp006
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© The Author [2009]. Published by Oxford University Press. All rights reserved.

Calculating remittiturs{dagger}

Joseph B. Kadane*

Leonard J. Savage University Professor of Statistics and Social Sciences, Emeritus, Department of Statistics, Carnegie Mellon University, Pittsburgh, Pennsylvania, USA

* Email: kadane{at}stat.cmu.edu


  Abstract

This note reviews several methods proposed for calculating the amount of an appropriate remittitur using a sample of ‘comparable’ cases. It recommends a simple quantile estimate.

Keywords: quantile estimation; Tchebycheff's inequality; Markov's inequality; remittitur

{dagger} Presented at a workshop held at George Washington University, August 1st 2009, in honour of the 70th birthday of Joe Gastwirth, one of the founding editors of Law, Probability and Risk.


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