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Question: The Embassy Lodge hotel chain wants to compare its brand efficiency to that of its major competitors using DEA. Embassy collected the following data reported in industry trade publications. Embassy views customers' perceptions of satisfaction and value (scored from 0 to 100 where 100 is best) to be outputs produced as a function of the following inputs: price, convenience, room comfort, climate control, service, and food quality. (All inputs are expressed on scales where less is better.)
Compute the DEA efficiency for each brand.
Which brands are efficient?
Is Embassy Lodge efficient? If not, what input and output values should they aspire to in order to become efficient?
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