Which of the Following Describes Data Envelopment Analysis (DEA)

question 24

Multiple Choice

Which of the following describes Data Envelopment Analysis (DEA) .

• A) DEA finds the most effective company among some set of companies.
• B) DEA determines if a company is converting inputs to outputs as effectively as possible.
• C) DEA determines how effective a company converts inputs to outputs compared to other companies.
• D) DEA compares how effective a company converts inputs to outputs compared to a benchmark composite of all companies.

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Definitions:

Market Interest Rate

The prevailing rate of interest available in the market for securities of similar risk and maturity.

Effective Interest Rate

The actual return on investment or cost of a loan, taking into account the compounding of interest, as opposed to the nominal rate.

Stated Interest Rate

The annual interest rate declared on a loan or investment, not taking into account compounding or fees.

Premium Amortized

The process of gradually writing off the initial cost of a premium over the period of the bond to match it with the interest earned.