Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7. [-/10 Points] DETAILS BBBASICSTAT8 9.3.007.S. MY NOTES PRACTICE ANOTHER Recall that Benford's Law claims that numbers chosen from very large data files tend to
7. [-/10 Points] DETAILS BBBASICSTAT8 9.3.007.S. MY NOTES PRACTICE ANOTHER Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 221 numerical entries from the file and r = 50 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. (i) Test the claim that p is less than 0.301. Use a = 0.05. LO USE SALT (a) What is the level of significance? State the null and alternate hypotheses. O Ho: p = 0.301; H1: p # 0.301 O Ho: p = 0.301; H1: p 0.301 (b) What sampling distribution will you use? ( The standard normal, since np > 5 and nq > 5. The standard normal, since np 5 and nq > 5. The Student's t, since np
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started