New method improves efficiency metrics by accounting for data outliers.
The researchers developed a new method called Quantile Data Envelopment Analysis (qDEA) to improve the accuracy of benchmarking performance in comparing efficiency of different companies. This method can handle outliers in the data better than traditional methods. By using qDEA, companies can get more reliable benchmarking information. The statistical properties of qDEA were tested using simulations, showing that it provides accurate estimates even with small sample sizes.