Essentials of Statistics (6th Edition)
Essentials of Statistics (6th Edition)
6th Edition
ISBN: 9780134685779
Author: Mario F. Triola
Publisher: PEARSON
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Chapter 11.1, Problem 21BSC

Ben ford’s Law. According to Benford’s law, a variety of different data sets include numbers with leading (first) digits that follow the distribution shown in the table below. In Exercises 21–24, test for goodness-of-fit with the distribution described by Benford’s law.

Chapter 11.1, Problem 21BSC, Ben fords Law. According to Benfords law, a variety of different data sets include numbers with

21. Detecting Fraud When working for the Brooklyn district attorney, investigator Robert Burton analyzed the leading digits of the amounts from 784 checks issued by seven suspect companies. The frequencies were found to be 0, 15, 0, 76, 479, 183, 8, 23, and 0, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford’s law, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford’s law. Does it appear that the checks are the result of fraud?

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Chapter 11 Solutions

Essentials of Statistics (6th Edition)

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