RESEARCHMETHODOLOGY:Thisproject assesses the efficiency of the universities that offer master coursesin business analytics based on following inputs and outputs.
DEA analysis isused to measure the efficiencies of different universities based on inputs andoutputs. Some of the most common inputs are number of faculty, number ofstudents enrolled, investment, course fee, student to faculty ratio and numberof research faculty. Common outputs are graduation rate, university ranking,number of researches published, freshmen retention rate and average salary ofthe graduate placed on campus. According to the results obtained from thesurvey conducted among the students who aspires to graduate following inputsand outputs were considered. Inputs are Course fee and Number of facultymembers and Number of students graduated and Average salary of the graduatedstudent are considered as outputs for this study.DataEnvelopment Analysis (DEA)ForDEA analysis on measuring the efficiencies, outputs vary mostly on the decisionfor taking inputs and outputs.
Inputs:Theinputs are Course fee and Number of faculty members CourseFee: Course fees is considered as the input to the University for taskperformance. In this research course fee is considered as an input. Auniversity is considered efficient if the University is charging low course feeand providing more quality of education or university is considered inefficientwhen it is charging high tuition fee, providing less quality of education.
Studentto faculty ratio: Availability of faculty members is also considered as aninput. The main aim of the university is to serve students with sufficientfaculty members. It will more or less indicate the number of students under theguidance of each faculty. Efficiency is achieved when more output is achievedwith less number of faculty. This also reflects the faculty strength of theuniversity.
Outputs:Theoutputs considered are Number of students graduated and Average salary of thegraduated student are considered as outputs. Numberof students graduated: Number of students graduated can also be termed asgraduation rate from that university. It usually refers to percentage or numberof students who has entered and completed the graduation.
It is also animportant performance indicator. Averagessalary of the graduated student: It is considered as an output, higher theaverage salary indicates the student position in an organization. It is also aperformance indicator. It will let us know how many students are placed oncampus. Higher rate of on campus placement will indicate the universityefficiency.
Table 1 lists the inputs and outputsconsidered for the DEA. Input Output Course fee Number of students graduated Number of faculty members Average salary of the graduate student Table 1: Inputs and outputs of DEARelativeratios are calculated for sample units known as DMUs after the inputs andoutputs were determined. 20 decision making units are considered for the study.These can be generally defined as an entity which is responsible for convertinginputs into outputs and evaluating their performances (Chuen & Kuan, 2011).This study focuses on the 20 universities that are rated as top 20 universitiesfor master’s in business analytics by some of the reputed research and sitessuch as U.S. News, organization of masters in science and analytics and Techrepublic.
So, efficiency is determined among the top list of universities thatoffer business analytics course. Thisstudy will stand as a sample study for many students who wants to graduate inbusiness analytics and aspire a career as business analytics.Thestudy has collected the data from various university ranking websites and sitesof the universities which provides the recent data of their university andperformance.
4Whiletaking the inputs and outputs for analysis data available in websites anduniversities is taken into consideration. Furthermore, research can be done todefine the efficiency using all the available measures. Numberof DMU’s condition is verified against inputs and outputs. i.e.
20 3*(2+2). Hence DMU condition is satisfied.Beforeconducting the data envelopment analysis for the data, inputs and outputs arechecked with the basic assumption of DEA. The assumption of inputs and outputsshould be positively correlated. The correlation analysis of inputs and outputsare shown in the table 2 below. Correlation Analysis Graduation rate Average salary of the graduate student Tuition Fee 0.371193488 0.032120628 Student to faculty ratio 0.
021519923 0.145157127 Table 2: Correlation analysis of inputsand outputs. Afterverifying all the measures of DEA. The DEA analysis is run in a software “DEAfrontier”.
Theresults after the analysis are as follow: Fig 1: Efficiency list of universitiesAftercalculating the DEA analysis, in the efficiency tab of the output shows thelist of all the universities which were found to be efficient. DMU’s 4,9 and 15are found to be efficient with a maximum score of 1. After considering all theinputs and outputs the universities that were found efficient are University ofsouthern California, New York university and University of Iowa.
Inthe efficiency tab universities that are found to be inefficient are alsolisted and they were benchmarked against the efficient universities with aweighted value as shown in the below figure. Fig 2: Efficiency tab of DEA analysis. Fromthe above figure we can analyze that inefficient universities are benchmarkedagainst the efficient universities with a weighted value. Forexample: University of Texas Austin isverified against and should reference two efficient universities with theirgiven weights (New York university and University of Iowa)Itis also represented in a simple equation:Universityof Texas at Austin 0.75868= 0.501 New York University + 0.
548 University ofIowaDEAanalysis not only measure the efficiency it also explains how the inefficientuniversity can achieve the targets to become efficient university. In thetarget tab, targets usually represent the amount of changes that the universityneed to make to their inputs and outputs to achieve maximum efficiency. Thisanalysis will also clearly explain how the respective inefficient universitiescan become more efficient by achieving their targets. These targets usuallyrepresent the amount of changes that they need to make to their inputs andoutputs to achieve maximum efficiency as shown in the below figure. Fig 3: Target values for universities.Forexample: For university of Texas at Austin, if the university decrease thetuition fee from $ 43000 to 32624 and decrease the student faculty ratio from18:1 to 10:1 than the university can achieve efficiency.Inappendix tab, data related to inputs and outputs can be found.Thus,by using the data envelopment methodology students will be able to define theefficient universities among the list of the universities of their interest.