Question
USE THE FOLLOWING INFORMATION FOR QUESTIONS 7-9. 7. Benford's Law, also known as the first-digit law, states that in tables of statistics, the digit 1
USE THE FOLLOWING INFORMATION FOR QUESTIONS 7-9.
7. Benford's Law, also known as the first-digit law, states that in tables of statistics, the digit 1 occurs about 30% of the time, which is greater than the expected 1/9 (for digits 1 through 9). The other digits also have relative frequencies described by Benford's Law, which are included in the Excel sheet for this question. The Excel sheet also includes the summary of the leading digits of 2013 diabetes prevalences for 325 U.S. counties, which will serve as the data of interest.
Conduct a goodness of fit test to determine if the distribution of leading digits follows Benford's Law. You will be using =0.01 to make the decision for this hypothesis test.
Find the expected value for the prevalence of the leading digit 4 assuming that the distribution in the sample follows Benford's Law. Answer to three decimal places as needed.
8. The data in the previous question were analyzed. Assuming that a test statistic equal to 10 was found, what would the p-value be for this hypothesis test? Answer to three decimal places as needed.
9. Using the critical value of 13.36, what is your decision? Choose the correct answer below.
A) Fail to reject H0. There is insufficient evidence to conclude that the sample distribution does not follow Benford's Law.
B) Fail to reject H0. There is sufficient evidence to conclude that the sample distribution does not follow Benford's Law.
C) Reject H0. There is insufficient evidence to conclude that the sample distribution does not follow Benford's Law.
D) Reject H0. There is sufficient evidence to conclude that the sample distribution does not follow Benford's Law.
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