Question: Problem 2. Evaluating Relative Efficiencies of Decision Making Units Data Envelopment Analysis (DEA) is an application of linear programming used to measure the relative efficiency

Problem 2. Evaluating Relative Efficiencies of
Problem 2. Evaluating Relative Efficiencies of Decision Making Units Data Envelopment Analysis (DEA) is an application of linear programming used to measure the relative efficiency of operating units with the same goals and objectives. As explained in the course, DEA can measure the relative efficiency of a group of hospitals. The data seen below involving seven teaching hospitals include three input measures and four output measures. Hospital Input Measures Full-Time Supply Equivalent Expense Nonphysicians ($1000s) 310 134.6 278.5 114.3 165.6 131.3 250 316 206.4 151.2 384 217 530.1 770.8 Bed-Days Available (1000) 116 106.8 65.52 94.4 102.1 153.7 215 . E G Output Measures Patient-Days Patient-Days (65 or older) (under 65) Nurses Interns (1000) ($1000s) Trained Trained 55.31 49.52 291 47 37.64 55.63 156 3 32.91 25.77 26 33.53 41.99 160 21 32.48 55.3 157 82 48.78 81.9 285 92 58.41 119.7 111 89 Hospital B D E F G 141 a. Formulate a linear programming model so that DEA approach can be used to evaluate the performance of hospital D

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