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The hospital administrator at a private hospital is considering a proposal for installing an automated medical records storage and retrieval system. To determine the advisability of purchasing such a system, the administrator needs to know the proportion of time that registered nurses (RNS) and licensed vocational nurses (LVNs) spend accessing records. Currently, these nurses must either retrieve the records manually or have them copied and sent to their wards. A typical ward, staffed by eight RNs and four LVNs, is selected for the study. a. The hospital administrator estimates that accessing records takes about 20 percent of the RNs' time and about 5 percent of the LVNs' time. The administrator wants 95 percent confidence that the estimate for each category of nurses falls within 0.03 of the true proportion (absolute accuracy = 0.03). For each of the two estimates provided by the administrator, calculate the required sample size. b. The hospital administrator estimates that the annual amortization cost and expenses for maintaining the new automated medical records storage and retrieval system will be $150,000/year. The supplier of the new system estimates that the system will reduce the amount of time the nurses spend accessing records by 25 percent. The total annual salary expense for RNs in the hospital is $3,628,000, and for LVNs it is $2,375,000. The hospital administrator assumes that nurses could productively use all of the time saved by the new system. The pilot work sampling study resulted in the data shown below. Should the administrator purchase the new system? Idle or break Accessing records Total observations Activity Attending to Other patients support activities 258 223 251 46 RN LVN 124 28 83 19 688 344 The hospital administrator at a private hospital is considering a proposal for installing an automated medical records storage and retrieval system. To determine the advisability of purchasing such a system, the administrator needs to know the proportion of time that registered nurses (RNS) and licensed vocational nurses (LVNs) spend accessing records. Currently, these nurses must either retrieve the records manually or have them copied and sent to their wards. A typical ward, staffed by eight RNs and four LVNs, is selected for the study. a. The hospital administrator estimates that accessing records takes about 20 percent of the RNs' time and about 5 percent of the LVNs' time. The administrator wants 95 percent confidence that the estimate for each category of nurses falls within 0.03 of the true proportion (absolute accuracy = 0.03). For each of the two estimates provided by the administrator, calculate the required sample size. b. The hospital administrator estimates that the annual amortization cost and expenses for maintaining the new automated medical records storage and retrieval system will be $150,000/year. The supplier of the new system estimates that the system will reduce the amount of time the nurses spend accessing records by 25 percent. The total annual salary expense for RNs in the hospital is $3,628,000, and for LVNs it is $2,375,000. The hospital administrator assumes that nurses could productively use all of the time saved by the new system. The pilot work sampling study resulted in the data shown below. Should the administrator purchase the new system? Idle or break Accessing records Total observations Activity Attending to Other patients support activities 258 223 251 46 RN LVN 124 28 83 19 688 344