Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

218 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Complete parts (a) through (c) below.

Distribution of first digits (Benford's Law)

Digit

1

2

3

4

5

Probability

0.301

0.176

0.125

0.097

0.079

Digit

6

7

8

9

Probability

0.067

0.058

0.051

0.046

First digits in allegedly fraudulent checks

First digit

1

2

3

4

5

6

7

8

9

Frequency

36

25

45

20

24

36

9

16

7

a) What is the test statistic? ____

b) P-value=____

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

WebAssign For A First Course In Differential Equations With Modeling Applications

Authors: Dennis G Zill

11th Edition

1337879770, 9781337879774

More Books

Students also viewed these Mathematics questions