Estimating DEA efficiency using uniform distribution
The most commonly used non-parametric tool for measuring the relative efficiency of Decision Making Units (DMU) is Data Envelopment Analysis (DEA). In this article, a method for measuring the efficiency level of a DMU when it is in an unfavourable situation as well as estimating the efficiency using...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Sains Malaysia
2014
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/19408/1/BMMSS%202%2037%204%202014%201075%E2%80%931083.pdf http://repo.uum.edu.my/19408/ http://math.usm.my/bulletin/html/vol37_4_13.html |
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| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | The most commonly used non-parametric tool for measuring the relative efficiency of Decision Making Units (DMU) is Data Envelopment Analysis (DEA). In this article, a method for measuring the efficiency level of a DMU when it is in an unfavourable situation as well as estimating the efficiency using uniform distribution is shown. The efficiency score from the traditional BCC-DEA model and the efficiency score in an unfavourable situation form an interval.This interval, known as interval efficiency, is used to estimate efficiency using uniform distribution.In an empirical example, a 95 percent confidence interval (CI) is calculated for the efficiency score using a three-point estimation method.The
analysis indicated that the efficiencies that were estimated from uniform distribution are all within the confidence interval. In addition, a statistical test shows that there is no significant different between the estimated efficiency and the efficiency from DEA. |
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