UPDATE:
Solved the problem. Apparently I was to tired to notice that the function was missing the necessary ‘s’ at the end of Gizmos. Function changed from OnDrawGizmo() to OnDrawGizmos() resolved issue.
I have tried adding color and making the radius bigger. A google search did not help either. I am just not able to get the Gizmo to draw around the position object as in the lecture. This seems like a necessity in order to create complex formations of the enemy ships. Please help! Using Unity 5.