Final answer:
To perform a hypothesis test, we need to state the hypotheses, formulate an analysis plan, analyze the sample data, determine the significance level, and interpret the results.
Step-by-step explanation:
To perform a hypothesis test on the claim that more than 25% of people ages 18-25 have used illicit drugs in the past 30 days, we need to follow these 5 steps:
State the hypotheses: The null hypothesis is that the proportion is 25% or less, and the alternative hypothesis is that the proportion is greater than 25%.
Formulate an analysis plan: We will use a one-sample proportion test.
Analyze sample data: In the sample of 300 people, 85 had used illicit drugs in the past 30 days.
Determine the significance level: The significance level is given as .01, which means the test will be conducted at a 1% level of significance.
Interpret the results: Using the given data, we will calculate the test statistic and compare it to the critical value at the 1% level of significance to determine if we reject or fail to reject the null hypothesis.