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:

Ideal Conditions

The most favorable environmental or operational conditions for conducting a study or achieving a desired outcome.

Efficacy

The ability to produce a desired or intended result, often used in the context of medications or treatments in clinical trials.

Clinical Trial

A research study that tests how well new medical approaches work in people.

Usual Circumstances

The typical or normal conditions or situations in which something is done or occurs.