(1,0.301), (2, 0.176), (3, 0.125), (4, 0.097), (5, 0.079), (6, 0.067), (7, 0.058), (8, 0.051), (9, 0.046) The IRS currently uses Benford's Law to detect fraudulent tax data. Suppose you work for the IRS and are investigating an individual suspected of embezzling. The first digit of 176 checks to a supposed company are as follows: Digit 456 78 2 3 9 Observed 42 27 13 16 15 20 9 16 18 Frequency a. State the appropriate null and alternative hypotheses for this test. b. Explain why a = 0.01 is an appropriate choice for the level of significance in this situation. c. What is the P-Value? Report answer to 4 decimal places P-Value = d. What is your decision? OFail to reject the Null Hypothesis O Reject the Null Hypothesis

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(1,0.301), (2, 0.176), (3, 0.125), (4, 0.097), (5, 0.079), (6, 0.067), (7, 0.058), (8, 0.051), (9, 0.046)
The IRS currently uses Benford's Law to detect fraudulent tax data. Suppose you work for the IRS and are
investigating an individual suspected of embezzling. The first digit of 176 checks to a supposed company
are as follows:
Digit
456 78
2
3
9
Observed
42 27 13
16 15 20 9 16 18
Frequency
a. State the appropriate null and alternative hypotheses for this test.
b. Explain why a = 0.01 is an appropriate choice for the level of significance in this situation.
c. What is the P-Value? Report answer to 4 decimal places
P-Value =
d. What is your decision?
OFail to reject the Null Hypothesis
O Reject the Null Hypothesis
Transcribed Image Text:(1,0.301), (2, 0.176), (3, 0.125), (4, 0.097), (5, 0.079), (6, 0.067), (7, 0.058), (8, 0.051), (9, 0.046) The IRS currently uses Benford's Law to detect fraudulent tax data. Suppose you work for the IRS and are investigating an individual suspected of embezzling. The first digit of 176 checks to a supposed company are as follows: Digit 456 78 2 3 9 Observed 42 27 13 16 15 20 9 16 18 Frequency a. State the appropriate null and alternative hypotheses for this test. b. Explain why a = 0.01 is an appropriate choice for the level of significance in this situation. c. What is the P-Value? Report answer to 4 decimal places P-Value = d. What is your decision? OFail to reject the Null Hypothesis O Reject the Null Hypothesis
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