An investigator analyzed the leading digits from 792 checks issued by seven suspect companies. The frequencies were found to be 235?, 136?, 99?, 87?, 51?, 49?, 43?, 45?, and 47?, and those digits correspond to the leading digits of?1, 2,?3, 4,?5, 6,?7, 8, and?9, respectively. If the observed frequencies are substantially different from the frequencies expected with?Benford's law shown?below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for?goodness-of-fit with?Benford's law. Does it appear that the checks are the result of?fraud?

An investigator analyzed the leading digits from 792 checks issued by seven suspect companies. The frequencies were found to be 235, 136, 99, 87, 51, 49, 43, 45, and 47, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency 235 136 99 Benford's Law: Distribution of Leading Digits 30.1% 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6% ited Determine the null and alternative hypotheses. Ho: H1 : Calculate the test statistic, x2. cou x2 =(Round to three decimal places as needed.) Calculate the P-value. P-value = (Round to four decimal places as needed.) State the conclusion. that the checks are the result of Ho. There sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It fraud. Next