According to Benfords law, certain digits (1, 2, 3, . . . , 9) are more likely
Question:
According to Benford’s law, certain digits (1, 2, 3, . . . , 9) are more likely to occur as the first significant digit in a randomly selected number than are other digits. For example, the law predicts that the number “1” is the most likely to occur (30% of the time) as the first digit. In a study reported in the American Scientist (July–Aug. 1998) to test Benford’s law, 743 first-year college students were asked to write down a six-digit number at random. The first significant digit of each number was recorded and its distribution summarized in the following table. These data are saved in the DIGITS file. Describe the first digit of the “random guess” data with an appropriate graph. Does the graph support Benford’s law? Explain.
First Digit Number of Occurrences
1 ............... 109
2 ............... 75
3 ............... 77
4 ............... 99
5 ............... 72
6 ............... 117
7 ............... 89
8 ............... 62
9 ............... 43
Total .............. 743
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer: