Estimating DEA efficiency using uniform distribution

Hossain M. K., KAMIL A. A., Mustafa A., Baten M. A.

Bulletin of the Malaysian Mathematical Sciences Society, cilt.37, sa.4, ss.1075-1084, 2014 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 37 Sayı: 4
  • Basım Tarihi: 2014
  • Dergi Adı: Bulletin of the Malaysian Mathematical Sciences Society
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Sayfa Sayıları: ss.1075-1084
  • Anahtar Kelimeler: Data envelopment analysis, Interval efficiency, Three-point estimation, Uniform distribution
  • İstanbul Gelişim Üniversitesi Adresli: Hayır

Özet

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.