An engineer has designed a valve that will regulate water pressure on an automobile engine. The valve was tested on 290 engines and the mean pressure was 7.6 lbs/square inch. Assume the standard deviation is known to be 1. If the valve was designed to produce a mean pressure of 7.7 lbs/square inch, is there sufficient evidence at the 0.02 level that the valve does not perform to the specifications?

State the null and alternative hypotheses for the above scenario.