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Difficulty: EasyDescriptive Statistics Interpretation

The table below displays the financial metrics for six companies operating across two industry sectors:

CompanySectorRevenue ($M)R&D Spend ($M)
Alpha TherapeuticsBiotech12030
Beta BioBiotech20050
Gamma TechIT45040
Delta PharmaBiotech16040
Epsilon HealthBiotech32070
Zeta SystemsIT50060

Statement: For the subset of companies operating in the Biotech sector, the median annual revenue is $180 million.

Answer: Answer

Answer

True
Filtering for Biotech companies gives revenues of 120M,120M, 160M, 200M,and200M, and 320M. With 4 items, the median is the average of the 2nd and 3rd terms: (160+200)/2=180(160 + 200) / 2 = 180 million dollars.

Step-by-Step Solution

1
Filter the dataset by Sector
Identified the four Biotech companies: Alpha Therapeutics (120M),BetaBio(120M), Beta Bio ( 200M), Delta Pharma (160M),andEpsilonHealth(160M), and Epsilon Health ( 320M).
The statement specifically concerns companies in the Biotech sector.
2
Sort the filtered revenues in ascending order
Ordered revenues: 120M,120M, 160M, 200M,200M, 320M.
Determining the median requires data elements to be ordered sequentially.
3
Calculate the median for an even-count dataset
Middle two values are 160Mand160M and 200M. Median = (160M+160M + 200M) / 2 = $180M.
For an even number of observations N=4N = 4, the median is the arithmetic mean of the (N/2)th(N/2)^{\text{th}} and (N/2+1)th(N/2 + 1)^{\text{th}} elements.

Key Concept

Calculating the median of a filtered table subset with an even number of items
Estimated Time:45s
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Topics

Descriptive Statistics Interpretation

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