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:

Service Business

A service business is a company that primarily earns revenue through providing intangible products, such as support, advice, or expertise, rather than physical goods.

Industrial Firms

Companies that engage in the production, distribution, and sale of industrial goods, including manufacturing and construction services.

Services Market

The services market encompasses the marketplace for the provision and consumption of intangible products, such as financial services, education, and healthcare.

Legal Advice

Professional guidance provided by a qualified lawyer or legal expert regarding the law.