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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Bibliographic Details
Published inBulletin of the Malaysian Mathematical Sciences Society Vol. 37; no. 4
Main Authors Hossain, Md Kamrul, Kamil, Anton Abdulbasah, Mustafa, Adli, Baten, Md Azizul
Format Journal Article
LanguageEnglish
Published Heidelberg Springer Nature B.V 01.01.2014
Subjects
Mathematics
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ISSN0126-6705
2180-4206

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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. 2010 Mathematics Subject Classification: 90B50
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ISSN:0126-6705
2180-4206