Abstract
Several unique features of data envelopment analysis (DEA) are incorporated into discriminant analysis (DA). Such a combined use of the two approaches is referred to as “DEA–DA” (Eur. J. Operat. Res. 1999 (115) 564). Sueyoshi (Eur. J. Operat. Res. 2001 (131) 324) has recently extended DEA–DA in a manner that it can deal with a negative value in data. The new version is referred to as “Extended DEA–DA”. An important feature of extended DEA–DA is that it can estimate weights of a linear discriminant function by minimizing the total deviation of misclassified observations. As an extension of his research, this research proposes a new type of mixed integer programming formulations that provide these weight estimates by minimizing the total number of misclassified observations.
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