An investigator analyzed the leading digits of the amounts from 200 checks issued by three suspect companies. The frequencies were found to be 68, 40, 18, 19, 8, 20, 6, 9, 12 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, the check amounts appear to be the result of fraud. Use a 0.05 significance level to test for goodness-of-fit with Benford's law.
a. Calculate the 2 test statistic.
b. Calculate the 2 critical value.
c. Is there sufficient evidence to conclude that the checks are the result of fraud?