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Benford's Law is a probability rule frequently used by accounting auditors to detect systematic fraud. It states that approximately 12.8% of numbers will begin with

Benford's Law is a probability rule frequently used by accounting auditors to detect systematic fraud. It states that approximately 12.8% of numbers will begin with the number 2.An auditor decides to investigate a particular firm further if a sample proportion of their invoices, with the invoiced number beginning with a 2, is in the highest 0.5% of all possible sample proportions.What sample proportion will cause further investigation of the firm if a random sample of 637 invoices is selected? Express youranswer in decimal form (ienot as a percentage),correct to two decimal places.

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TABLE A.5 Areas of the standard normal distribution/ = 0, o = 1 The entries in this table are the probabilities that a standard normal random variable is between 0 and z, (the shaded area). 0 21 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 21 0.0 0000 0040 0080 0120 0160 019 0239 .0279 0319 0359 0.1 0398 0438 .0478 0517 .0557 0596 0636 0675 0714 0753 0.2 0793 0832 .0871 0910 0948 0987 1026 1064 1103 1141 0.3 1179 1217 1255 1293 1331 1406 1443 1480 .1517 0.4 .1554 1664 1700 0.5 1915 1950 .1985 .2019 .2054 .2088 .2157 2190 2224 0.6 2257 .2291 2357 .2389 .2422 .2454 .2486 2517 2549 0.7 2580 .2611 .2642 .2673 .2704 .2794 2852 0.8 .2939 3051 .3078 3106 3133 0.9 .3159 3186 3212 .3238 3264 3315 .3340 3389 1.0 3413 3554 3577 1.1 3643 3665 3686 3708 3729 3749 .3790 1.2 3849 3869 3888 3925 .3944 3962 3980 .3997 4015 1.3 4032 4049 4082 4099 4115 4131 4147 4162 4177 1.4 .4192 4207 4222 .4236 4251 4265 4279 4292 4306 .4319 1.5 .4332 .4345 4406 4418 4429 .4441 1.6 4452 4463 4474 4484 4495 4515 4535 1.7 4554 4564 4582 4591 4608 4625 4633 B'L 4641 4649 4664 .4671 4686 4706 1.9 4713 4719 4726 4738 4750 4756 4761 .4767 2.0 4772 4778 4783 .4793 .4803 4812 2.1 .4838 4842 .4846 4854 4857 2.2 4875 4878 2.3 .4893 4896 4901 4906 4913 4916 2.4 4918 .4920 4925 .4927 .4931 4932 4934 4936 2.5 4940 4941 4943 4946 4948 4949 2.6 4955 4957 1960 .4961 4962 4963 2.7 4969 4970 4972 4973 2.8 4974 4975 4977 4978 4979 4980 4981 2.9 4981 4982 4982 4983 4984 4985 4986 3.0 4987 .4988 4988 4989 .4989 .4990 4990 3.1 4990 4991 4991 4992 4992 4992 .4992 4993 4993 3.2 .4993 4993 4994 4994 4994 4994 3.3 . 4995 .4996 4997 3.4 .4997 .4997 .4997 4997 . 4998 3.5 4998 4.0 49997 4.5 499997 5.0 4999997 6.0 499999999

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