Many families in California are using backyard structures for home offices, art studios, and hobby areas as well as for additional storage. Suppose that the mean price for a customized wooden, shingled backyard structure is $3100. Assume that the standard deviation is $1200.
a. What is the z-score for a backyard structure costing $2300?
b. What is the z-score for a backyard structure costing $4900?
c. Interpret the z-scores in parts (a) and (b). Comment on whether either should be considered an outlier.
d. If the cost for a backyard shed-office combination built in Albany, California, is $13,000, should this structure be considered an outlier? Explain.