Methods of Estimating the Input Coefficients for Linear Programming Models
1985
Ray, Subhash C.
In order to apply the linear programming method to determine the most profitable product mix of a farm, it is often necessary to estimate the input coefficients from sample data. The estimated coefficients must all be nonnegative. Estimates from regression models of input demand equations are not always nonnegative. The sample average of inputs used per acre of various crops provides nonnegative estimates but may suffer from selectivity bias. In this study the methods of minimizing the mean of absolute deviations and of minimizing the maximum absolute deviation are discussed as alternatives to inequality‐constrained least squares.
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