3. Benford's law distribution Faked numbers in tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law. Call the first digit of a randomly chosen record X for short. The probability distribution for X is shown here (note that a first digit can't be 0). Make a histogram of the probability distribution. Describe its shape. 3 9 First digit 1 2 4 5 6 7 8 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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Calculate and interpret the standard deviation of X

3.
Benford's law distribution Faked numbers in tax returns, invoices, or
expense account claims often display patterns that aren't present in
legitimate records. Some patterns, like too many round numbers, are
obvious and easily avoided by a clever crook. Others are more subtle. It is
a striking fact that the first digits of numbers in legitimate records often
follow a model known as Benford's law. Call the first digit of a randomly
chosen record X for short. The probability distribution for X is shown here
(note that a first digit can't be 0). Make a histogram of the probability
distribution. Describe its shape.
9
First digit
1 2 3 4 5 6 7 8
Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046
Transcribed Image Text:3. Benford's law distribution Faked numbers in tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law. Call the first digit of a randomly chosen record X for short. The probability distribution for X is shown here (note that a first digit can't be 0). Make a histogram of the probability distribution. Describe its shape. 9 First digit 1 2 3 4 5 6 7 8 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046
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