Question 8
There are 7 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 the business unit 3 has obtained an efficiency of 0.9 and the business unit 7 has obtained an efficiency of 1 with the optimal weights of business unit 5. Which of the following statements are correct?
Business unit 3 may be inefficient
Business unit 3 will be efficient
Business unit 7 may be inefficient
Business unit 7 will be efficient