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Average Statistics

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Actual Earnings Use
Average Statistics
Basic Analysis Methodology
Broad Support
Census Bureau Caveat
Chronic Disability
Corcione Article
CPS Data Validity
CPS Definition of Work Disability
CPS Self-reported Disability
CPS Use by Other Researchers
Daubert/Kumho Standards - WLE
Employment, Earnings, & Disability
Expert Qualifications
First Work Disability Question
Hale Article
Hamel Letter
Heterogeneity
Medical Impairment Ratings
Multi-year Data Averaging
Offset Use
Possibility of Future Disability
Residual Capacity
Sample Selection Bias
Skoog & Toppino Article
Temporary Disability
VALE Software
Veteran's Disability

 

Usual Opposition Position
Statistical averages of cohort groups are frequently used to assess earning capacity and worklife expectancy.  Some believe that use of statistical averages for specific plaintiffs is inappropriate
 
VEI Position
Averages from various populations have long been accepted as a means for prediction – life expectancy, earnings, and others.  No statistic, no matter how fine-tuned, can provide an exact predictor of an individual’s future.  This is as true of worklife expectancies as it is of various measures of annual earnings and growth and discount rates.  The expert must use available statistics about populations and mold them to meet the specifics of the case.  As noted by Marcia Angell in Science on Trial (1997, p. 115):

Courtroom trials are not about populations, they are about individuals. . . . We have no basis, at least in the current state of knowledge, for making a judgment about a particular woman.  We therefore must appeal to epidemiological data – that is, studies of populations.

The United States Supreme Court recognized this uncertainty several years ago, in their decision in Jones and Laughlin Steel Corporation v. Howard E. Pfeifer 462 U.S. 523 (1983):

By its very nature the calculation of an award for lost earnings must be a rough approximation.  Because the lost stream can never be predicted with complete confidence, any lump sum represents only a “rough and ready” effort to put the plaintiff in the position he would have been in had he not been injured. 

Economists, actuaries, insurance companies, and gambling establishments use population averages when making rational bets on human outcomes.  The basic belief is that in the absence of more specific and precise information, the best predictors of outcomes are statistical averages or relative frequencies.  Following this, it is not true that disability data would have to be disaggregated by type, severity, or duration of disability in order to be reliable or meaningful. 

Even if segregated data existed, its use would be limited at best.  Persons with the same diagnosis and the same length of time since injury can have dramatically different experiences in terms of their experience in the workplace, especially when education level is factored in.  Consider an example of two men with identical hand injuries resulting in reduced grip strength and limited range of motion.   This injury would have an enormous impact on a carpenter, who would likely need to leave his employment.  For an English professor, however, the effect may be minimal.  

What the criticism does point to, however, is the fact that statistics of all sorts must be used responsibly and applied by persons familiar with issues involved.  When assessing persons with disability, for instance, the user must be familiar with the effects of impairment on ability to work and earn money as well as the experiences of persons with disability in the labor market.
 
Related Challenges
Anglin v. Reed Artl v. Wright Bennett v. Hidden Valley
Bentley v. Rose Bowman v. McClendon Celarek v. Rutland
Farina v. Hershey Fischer v. Whitson Franks v. Caito
Gruener v. Ohio Casualty K v. Woodford Langer v. Anderson
McCoy v. Huyear McGonigal v. Lucas Mesman v. Crane
Michels v. United States Phillips v. Industrial Machine Scott v. Pyn
Wright v. Werner    
 
Related Articles
Gamboa & Holland (2005) Gibson & Gluck (2000) Gluck & Sachnin (2000)
Pflaum, et al. (2003) Staller, Sullivan, & Friedman (2000)  

Last modified: Tuesday April 03, 2007 03:00 PM


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