Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The first significant digit in any number must be1, 2,3, 4,5, 6,7, 8, or 9. It was discovered that first digits do not occur with

The first significant digit in any number must be1, 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 asBenford's Law. Forexample, the following distribution represents the first digits in 220 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Complete parts (a) and (b) below.

image text in transcribed
H Distribution of First Digits X Distribution of first digits (Benford's Law) Digit 1 2 3 4 5 Full data set 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 32 28 26 23 36 15 17 7 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

The Legal Environment of Business A Critical Thinking Approach

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

6th Edition

978-0132666688, 132666685, 132664844, 978-0132664844

Students also viewed these Mathematics questions