Using Data Envelopment Analysis (DEA) for an Inefficient Unit, a More

question 9

Multiple Choice

Using Data Envelopment Analysis (DEA) for an inefficient unit, a more efficient composite unit can be found by

• A) Solving its DEA problem and retrieving the weights from the answer report.
• B) Solving its DEA problem and examining those units whose final value is non-zero.
• C) Solving its DEA problem and using the resulting shadow prices as composite weights.
• D) Solving its DEA problem and using the positive resulting shadow prices as composite weights.

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Definitions:

Itemized Deductions

Expenses that taxpayers can subtract from their gross income to reduce the taxable income, including payments like mortgage interest, state taxes, and charitable contributions, as specified by the IRS.

Forfeit

The loss of any right, privilege, or property because of a breach of obligation or failure to meet a requirement.

Mileage Reimbursement

Compensation for fuel and wear-and-tear expenses for the use of a personal vehicle for business purposes, usually calculated by the mile.

Schedule C

A tax form used by sole proprietors to report income and expenses from a business.