10.40 The report “2007 Electronic Monitoring &

Surveillance Survey: Many Companies Monitoring, Recording, Videotaping—and Firing—Employees”

(American Management Association, 2007) summarized the results of a survey of 304 U.S. businesses. Of these companies, 201 indicated that they monitor employees’

web site visits. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of businesses in the United States.

a. Is there sufficient evidence to conclude that more than 60% of U.S. businesses monitor employees’

web site visits? Test the appropriate hypotheses using a significance level of .01.

b. Is there sufficient evidence to conclude that a majority of U.S. businesses monitor employees’ web site visits? Test the appropriate hypotheses using a significance level of .01.