Question 8
There are 6 business units and you are using the DEA to compare them. You solve the LP for business unit 5. You find from the constraint expression that business unit 5 has obtained an efficiency of 0.7 and business unit 6 has obtained an efficiency of 1 with the optimal weights of business unit 5. Which of the following statements is correct?
Business unit 5 may be efficient
Business unit 6 will be efficient
Business unit 5 may be inefficient
Business unit 6 will be inefficient