Benford's law Faked numbers on tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law.³ Call the first digit of a randomly chosen record X for short. Benford's law gives this probability model for X (note that a first digit can't be 0). Show that this is a valid probability distribution. 3 5 6 7 First digit 1 2 4 8 9 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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1.
P9 333
Benford's law Faked numbers on tax returns, invoices, or expense
account claims often display patterns that aren't present in legitimate
records. Some patterns, like too many round numbers, are obvious and
easily avoided by a clever crook. Others are more subtle. It is a striking
fact that the first digits of numbers in legitimate records often follow a
model known as Benford's law.³ Call the first digit of a randomly chosen
record X for short. Benford's law gives this probability model for X (note
that a first digit can't be 0). Show that this is a valid probability
distribution.
First digit
1
2
3
4
6
Probability 0.301 0.176 0.125 0.097 0.079 0.067
7
8
9
0.058 0.051 0.046
Transcribed Image Text:1. P9 333 Benford's law Faked numbers on tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law.³ Call the first digit of a randomly chosen record X for short. Benford's law gives this probability model for X (note that a first digit can't be 0). Show that this is a valid probability distribution. First digit 1 2 3 4 6 Probability 0.301 0.176 0.125 0.097 0.079 0.067 7 8 9 0.058 0.051 0.046
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