An investigator analyzed the leading digits from 766 checks issued by seven suspect companies. The frequencies were found to be 212,144,104,54,64,48,40,43 and 57, and those digits correspond to the leading digits of 1,2,3,4,5,6,7,8, and 9, respectively. If the obserced frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amonts appear to result form fraud. Use a 0.02 significance level to test for goodness of fit with bendford's law. Does it appear that the checks are the result of fraud? Leading Digit 1 2 3 4 5 6 7 8 9 Actual Frequency 212 144 104 54 64 48 40 43 57 Benford's Law: Distribution of Leading Digits 30.1% 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6% State the conclusion as: (3)________________H0. There (4)___________sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It (5) __________ that the checks are the result of fraud.
An investigator analyzed the leading digits from 766 checks issued by seven suspect companies. The frequencies were
found to be 212,144,104,54,64,48,40,43 and 57, and those digits correspond to the leading digits of 1,2,3,4,5,6,7,8, and 9, respectively. If the obserced frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amonts appear to result form fraud. Use a 0.02 significance level to test for goodness of fit with bendford's law. Does it appear that the checks are the result of fraud?
Leading Digit 1 2 3 4 5 6 7 8 9
Actual Frequency 212 144 104 54 64 48 40 43 57
Benford's Law: Distribution of
Leading Digits
30.1% 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6%
State the conclusion as:
(3)________________H0. There (4)___________sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It (5) __________ that the checks are the result of fraud.
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