An investigator analyzed the leading digits from 799 checks issued by seven suspect companies. The frequencies were found to be 3, 11, 4, 53, 474, 194, 7, 23, and 30, 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 shown below, the check amounts appear to result from fraud. Use a 0.10 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 7 30.1% 17.6% 12.5% 53 9.7% 474 7.9% 194 6.7% 5.8% 23 5.1% 4.6%

An investigator analyzed the leading digits from 799 checks issued by seven suspect companies. The frequencies were found to be 3, 11, 4, 53, 474, 194, 7, 23, and 30, 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 shown below, the check amounts appear to result from fraud. Use a 0.10 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 7 30.1% 17.6% 12.5% 53 9.7% 474 7.9% 194 6.7% 5.8% 23 5.1% 4.6%

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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