Acme Furniture Company manufactures sofas and other living room furniture. The daily production of sofas follows a normal distribution with a mean of 30 and a standard deviation of 6. Recently, due to market expansion, new production methods have been introduced. Based on the past 15 days, the daily sofa production showed a mean of 34 with a standard deviation of 5. Has the daily production of sofas increased? Test using the 0.07 significance level.

a. State the Null and Alternate Hypotheses:

H₀ :

H₁:

b. What is the direction of the test?

c. State the decision rule:

(Note: IF your answer to question (b) above is 2-T, provide the answer using the positive side of the tails. The Final answer should be in 2 decimal places and IF your answer is a negative number, it must include the negative sign.)

Do not reject H₀ when the test statistics is:

d. Compute the value of the test statistic.

e. What is your Conclusion?