Chapter 10

Data Sufficiency

Determining whether a question can be answered from the data given

10.1 The principle

Before calculating, ask: do I have enough data for a unique answer? If any key value is missing or ambiguous, the answer is 'impossible to determine.'


10.2 The two-unknowns trap

A + B = C  (known)
A = ?   B = ?    →  Cannot be solved — need one more equation

Example: total revenue €9.4M. North = €3.8M. East + South = €5.6M. Without East or South individually, neither can be determined.


10.3 Annual average vs monthly detail

💡 Knowing the annual average rose from 5.4% to 6.1% tells you the year-on-year trend, but says nothing about specific months.

10.4 Operating margin requires ALL operating costs

Operating margin = Operating profit ÷ Revenue
Operating profit  = Revenue − ALL operating costs

Staff costs alone are insufficient. Without rent, depreciation, materials and other overheads, operating margin cannot be calculated.


10.5 Weighted average requires all the weights

Without respondent counts per region, the true weighted average cannot be determined. A simple average of regional scores treats all regions as equally sized — which is almost always wrong.