Frequencies of leading digits from IRS tax files are 152, 89, 63, 48, 39, 40, 28, 25,

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Frequencies of leading digits from IRS tax files are 152, 89, 63, 48, 39, 40, 28, 25, and 27 (corresponding to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively, based on data from Mark Nigrini, who provides software for Benford data analysis). Using a 0.05 significance level, test for goodness-of-fit with Benford’s law. Does it appear that the tax entries are legitimate?

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Mathematical Interest Theory

ISBN: 9781470465681

3rd Edition

Authors: Leslie Jane, James Daniel, Federer Vaaler

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