Classifying with uncertain data envelopment analysis

Classifications organize entities into categories that identify similarities within a category and discern dissimilarities among categories, and they powerfully classify information in support of analysis. We propose a new classification scheme premised on the reality of imperfect data. Our computat...

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Main Authors: Casey Garner, Allen Holder
Format: Article
Language:English
Published: Elsevier 2024-01-01
Series:EURO Journal on Computational Optimization
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2192440624000078
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author Casey Garner
Allen Holder
author_facet Casey Garner
Allen Holder
author_sort Casey Garner
collection DOAJ
description Classifications organize entities into categories that identify similarities within a category and discern dissimilarities among categories, and they powerfully classify information in support of analysis. We propose a new classification scheme premised on the reality of imperfect data. Our computational model uses uncertain data envelopment analysis to define a classification's proximity to equitable efficiency, which is an aggregate measure of intra-similarity within a classification's categories. Our classification process has two overriding computational challenges, those being a loss of convexity and a combinatorially explosive search space. We overcome the first challenge by establishing lower and upper bounds on the proximity value, and then by searching this range with a first-order algorithm. We address the second challenge by adapting the p-median problem to initiate our exploration, and by then employing an iterative neighborhood search to finalize a classification. We conclude by classifying the thirty stocks in the Dow Jones Industrial average into performant tiers, by classifying prostate treatments into clinically effectual categories, and dividing airlines into peer groups.
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spelling doaj-art-c4e1d0d06c374588b10cc9a90d0e5ba32024-12-14T06:30:53ZengElsevierEURO Journal on Computational Optimization2192-44062024-01-0112100090Classifying with uncertain data envelopment analysisCasey Garner0Allen Holder1Dept. of Mathematics, University of Minnesota, Minneapolis, MN, USADept. of Mathematics, Rose-Hulman Institute of Technology, Terre Haute, IN, USA; Corresponding author.Classifications organize entities into categories that identify similarities within a category and discern dissimilarities among categories, and they powerfully classify information in support of analysis. We propose a new classification scheme premised on the reality of imperfect data. Our computational model uses uncertain data envelopment analysis to define a classification's proximity to equitable efficiency, which is an aggregate measure of intra-similarity within a classification's categories. Our classification process has two overriding computational challenges, those being a loss of convexity and a combinatorially explosive search space. We overcome the first challenge by establishing lower and upper bounds on the proximity value, and then by searching this range with a first-order algorithm. We address the second challenge by adapting the p-median problem to initiate our exploration, and by then employing an iterative neighborhood search to finalize a classification. We conclude by classifying the thirty stocks in the Dow Jones Industrial average into performant tiers, by classifying prostate treatments into clinically effectual categories, and dividing airlines into peer groups.http://www.sciencedirect.com/science/article/pii/S2192440624000078Data envelopment analysisRobust optimizationClassificationClustering
spellingShingle Casey Garner
Allen Holder
Classifying with uncertain data envelopment analysis
EURO Journal on Computational Optimization
Data envelopment analysis
Robust optimization
Classification
Clustering
title Classifying with uncertain data envelopment analysis
title_full Classifying with uncertain data envelopment analysis
title_fullStr Classifying with uncertain data envelopment analysis
title_full_unstemmed Classifying with uncertain data envelopment analysis
title_short Classifying with uncertain data envelopment analysis
title_sort classifying with uncertain data envelopment analysis
topic Data envelopment analysis
Robust optimization
Classification
Clustering
url http://www.sciencedirect.com/science/article/pii/S2192440624000078
work_keys_str_mv AT caseygarner classifyingwithuncertaindataenvelopmentanalysis
AT allenholder classifyingwithuncertaindataenvelopmentanalysis