DEA Practice Problems

Problem 1. Pine Valley Bank has three branches. You have been asked to evaluate the efficiency of
each. The following inputs and outputs are to be used for the study:
Input 1: labor hours used (hundreds per month)
Input 2: space used (in hundreds of square feet)
Input 3: supplies used per month (in dollars)
Output 1: loan applications per month
Output 2: deposits processed per month (in thousands)
Output 3: checks processed per month (in thousands)
The relevant information is given in the file PVB.xlsx. Use these data to determine whether any bank
branches are inefficient.
Problem 2. The Salem board of education wants to evaluate the efficiency of the towns four
elementary schools. The three outputs of the schools are
Output 1: average reading score
Output 2: average mathematics score
Output 3: average self-esteem score
The three inputs to the schools are
Input 1: average educational level of mothers (defined by highest grade completed: 12 =high
school, 16=college graduate and son)
Input 2: number of parents visit to school (per child)
Input 3: teacher to student ratio
The relevant information for the four schools is given in the file school.xlsx. Determine which (if any)
schools are inefficient.
Problem 3. You have been asked to evaluate the efficiency of the Port Charles Police Department.
Three precincts are to be evaluated. The inputs and outputs for each precinct are as follows:
Input 1: number of policemen
Input 2: number of vehicles used
Output 1: number of petrol units responding to service requests (thousands per year)
Output 2: number of convictions obtained each year (in hundreds)

You are given the data in the file Police.xlsx. Use this information to determine which precincts, if
any, are inefficient.