The composite unit in DEA
A) has as output a weighted average of the outputs of the individual units.
B) has as input a weighted average of the inputs of the individual units.
C) has outputs greater than or equal to the outputs of any individual unit.
D) All of the alternatives are correct.

Question

Quizplus · Accepted Answer

In Data Envelopment Analysis (DEA), the composite unit is constructed using a weighted average of inputs and outputs from individual units to form a virtual unit. This virtual unit's outputs are at least as large as any individual unit's outputs, and its inputs are a weighted average of the inputs of the individual units.

The Composite Unit in DEA