An investigator analyzed the leading digits from 785 checks issued by seven suspect companies. The frequencies were found to be 253, 135, 115, 71, 81, 52, 40, 39. and 19. and those digits correspond to the leading digits of 1, 2, 3, 4. 5. 6, 7, 8, and respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's la Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law:. Distribution of Leading Digits 253 30.1% 135 115 12.5% 39 5.1% 19 4.6% 40 17.0% 9.7 7.9% 6.7% 5.8% Determine the null and alternative hypotheses

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B. Calculate the​ P-value.

P-value=____

b2. State the conclusion.

(Reject/ Do not reject) H0. There (is/ is not) 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 (does not appear/ does appear) that the checks are the result of fraud.

An investigator analyzed the leading digits from 785 checks issued by seven suspect companies. The frequencies were found to be 253, 135, 115, 71, 81, 52, 40, 39. and 19. and those digits correspond to the leading digits of 1, 2, 3, 4. 5. 6, 7, 8, and
respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's la
Does it appear that the checks are the result of fraud?
Leading Digit
Actual Frequency
Benford's Law:. Distribution of Leading Digits
253
30.1%
135
115
12.5%
39
5.1%
19
4.6%
40
17.0%
9.7
7.9%
6.7%
5.8%
Determine the null and alternative hypotheses
Transcribed Image Text:An investigator analyzed the leading digits from 785 checks issued by seven suspect companies. The frequencies were found to be 253, 135, 115, 71, 81, 52, 40, 39. and 19. and those digits correspond to the leading digits of 1, 2, 3, 4. 5. 6, 7, 8, and respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's la Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law:. Distribution of Leading Digits 253 30.1% 135 115 12.5% 39 5.1% 19 4.6% 40 17.0% 9.7 7.9% 6.7% 5.8% Determine the null and alternative hypotheses
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