The popularity of personal watercraft

(PWCs, also known as jet skis) continues to increase, despite the apparent danger associated with their use. In fact, a sample of 54 reported watercraft accidents to the Game and Parks Commission in the state of Nebraska revealed that 85% of them involved PWCs, even though only 8% of the motorized boats registered in the state are PWCs.

Source: Nebraskaland, “Officer’s Notebook: The Personal Problem”

Suppose the national average proportion of watercraft accidents involving PWCs was 78%. Does the watercraft accident rate for PWCs in the state of Nebraska exceed the nation as a whole? Use a 0.01 level of significance.

a. Solve using the p-value approach.

b. Solve using the classical approach.