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Non-Parametric Method
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Concept
Data Envelopment Analysis
Data Envelopment Analysis
(DEA) is a
non-parametric method
used in
operations research
and economics to estimate the
production frontiers
, allowing for the evaluation of the
relative efficiency
of
decision-making units
(DMUs) based on their
input-output data
. It is widely used to assess the
performance of organizations
, such as banks, hospitals, and schools, by comparing them to the
best-performing entities
in the dataset.
3