The report “2005 Electronic Monitoring & Surveillance Survey: Many Companies Monitoring, Recording, Videotaping—and Firing—Employees” (American Management Association, 2005) summarized the results of a survey of 526 U.S. businesses. The report stated that 137 of the 526 businesses had fired workers for misuse of the Internet and 131 had fired workers for e-mail misuse. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of businesses in the United States.
a. Construct and interpret a 95% confidence interval for the proportion of U.S. businesses that have fired workers for misuse of the Internet.
b. What are two reasons why a 90% confidence interval for the proportion of U.S. businesses that have fired workers for misuse of e-mail would be narrower than the 95% confidence interval computed in Part (a)?