An investigator analyzed the leading digits from 791 checks issued by seven suspect companies. The frequencies were found to be 5, 13, 5, 68, 273, 358, 5, 23, and 41, 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 freguencies 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 law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 2 13 17.6% 6 358 4 68 9.7% 273 23 41 4.6% 30.1% 12.5% 7.9% 6.7% 5.8% 5.1% Determine the null and alternative hypotheses. Ho At least one leading digit has a frequency that does not conform to Benford's law. The leading digits are from a population that conforms to Benford's law At least two leading digits have frequencies that do not conform to Benford's law. At most three leading digits have frequencies that do not conform to Benford's law.

An investigator analyzed the leading digits from 791 checks issued by seven suspect companies. The frequencies were found to be 5, 13, 5, 68, 273, 358, 5, 23, and 41, 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 freguencies 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 law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 2 13 17.6% 6 358 4 68 9.7% 273 23 41 4.6% 30.1% 12.5% 7.9% 6.7% 5.8% 5.1% Determine the null and alternative hypotheses. Ho At least one leading digit has a frequency that does not conform to Benford's law. The leading digits are from a population that conforms to Benford's law At least two leading digits have frequencies that do not conform to Benford's law. At most three leading digits have frequencies that do not conform to Benford's law.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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