BUspect companies. The frequencies were found to be 5, 10, 0, 61, 320, 322, 5, 17, and 31, 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 diffferent 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-ft 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 10 17.6% 320 7.9% 322 6.7% 61 17 31 30.1% 12.5% 9.7% 5.8% 5.1% 4.6% Determine the null and alternative hypotheses Ho H Calc The leading digits are from a population that confoms to Benford's law Calc At least two leading digits have frequencies that do not conform to Benford's law Pva At least one leading digit has a frequency that does not conform to Benford's law. Stat At most three leading digits have frequencies that do not conform to Benford's law ng digits are from a population with a distribution that conforms to Benfords law. that the checks are the result of fraud.
BUspect companies. The frequencies were found to be 5, 10, 0, 61, 320, 322, 5, 17, and 31, 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 diffferent 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-ft 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 10 17.6% 320 7.9% 322 6.7% 61 17 31 30.1% 12.5% 9.7% 5.8% 5.1% 4.6% Determine the null and alternative hypotheses Ho H Calc The leading digits are from a population that confoms to Benford's law Calc At least two leading digits have frequencies that do not conform to Benford's law Pva At least one leading digit has a frequency that does not conform to Benford's law. Stat At most three leading digits have frequencies that do not conform to Benford's law ng digits are from a population with a distribution that conforms to Benfords law. that the checks are the result of fraud.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:An investigator analyzed the leading digits from 771 checks issued by seven suspect companies. The frequencies were found to be 5, 10, 0, 61, 320, 322, 5, 17, and 31, 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 0.01 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
3.
4
10
17.6%
322
6.7 %
17
5.1%
61
320
7.9%
31
4.6%
30.1%
12.5%
9.7%
5.8%
Determine the null and alternative hypotheses.
Ho
Calc
The leading digits are from a population that conforms to Benford's law.
Calo
At least two leading digits have frequencies that do not conform to Benford's law.
P-va
At least one leading digit has a frequency that does not conform to Benford's law.
State
At most three leading digits have frequencies that do not conform to Benford's law.
ng digits are from a population with a distribution that conforms to Benford's law. It
V that the checks are the result of fraud.
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