Need help with problem C.
Homework: 8-2 MyStatLab: Module Eight Problem Set Save Score: 4.67 of 7 pts 4 of 10 (8 complete) HW Score: 61.03%, 39.67 of 65 pts Xx 12.1.13-T Question Help The first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8, or 9. It was discovered that first digits do not occur with equal frequency. Probabilities of occurrence to the first digit in a number are shown in the accompanying table. The probability distribution is now known as Benford's Law. For example, the following distribution represents the first digits in 237 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Complete parts (a) through (c) below. Click the icon to view the tables. (a) Because these data are meant to prove that someone is guilty of fraud, what would be an appropriate level of significance when performing a goodness-of-fit test? Use a = 0.01. Benford's Law? (b) Using the level of significance chosen in part (a), test whether the first digits in the allegedly fraudulent checks obey Benford's Law. Do the first digits obey What are the null and alternative hypotheses? O A. Ho: The distribution of the first digits in the allegedly fraudulent checks does not obey Benford's Law. Hy: The distribution of the first digits in the allegedly fraudulent checks obeys Benford's Law. B. Ho: The distribution of the first digits in the allegedly fraudulent checks obeys Benford's Law. Hy: The distribution of the first digits in the allegedly fraudulent checks does not obey Benford's Law. What is the test statistic? X = 58.121 (Round to three decimal places as needed.) What is the P-value of the test? P-value = 0.000 (Round to three decimal places as needed.) Using the P-value approach, compare the P-value with the given a = 0.01 level of significance. Based on the results, do the first digits obey Benford's Law? O A. Do not reject the Ho because the calculated P-value is greater than the given a level of significance. O B. Reject the Ho because the calculated P-value is greater than the given a level of significance O c. Do not reject the Ho because the calculated P-value is less than the given a level of significance. D. Reject the Ho because the calculated P-value is less than the given a level of significance (c) Based on the results of part (b), could one think that the employee is guilty of embezzlement? O A. No, the first digits do not obey Benford's Law. O B. No, the first digits obey Benford's Law. O C. Yes, the first digits do not obey Benford's Law. O D. Yes, the first digits obey Benford's Law