7. In a simple linear regression context, consider testing a hypothesis regarding the expected response at a value X = x of the covariate.

(a) If the hypothesis is of the form H0 : μY|X(x) = μY|X(x)0 versus Ha : μY|X(x) > μY|X(x)0, where

μY|X(x)0 is a specified value, state the form of the RR.

(Hint. It is either of the form !μY|X(x) ≥ C or of the form !μY|X(x) ≤ C for some constant C.)

(b) Use the rationale of Example 8.2-2 to determine the constant C from the requirement that the level of significance is α = 0.05.