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Determine the null and alternative hypotheses. Calculate the test statistic, = (Round to three decimal places as needed.) Calculate the Pvalue. P.valueO (Round to four decimal places as needed.) State the conclusion. V Ho. There V 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 V that the checks are the result of fraud.

Determine the null and alternative hypotheses. Calculate the test statistic, = (Round to three decimal places as needed.) Calculate the Pvalue. P.valueO (Round to four decimal places as needed.) State the conclusion. V Ho. There V 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 V that the checks are the result of fraud.

MATLAB: An Introduction with Applications
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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An investigator analyzed the leading digits from 761 checks issued by seven suspect companies. The frequencies were found to be 230, 115, 83, 79, 60, 58, 47, 36, and 53, 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 2 115 17.6% 6. 58 6.7% 4 230 30.1% 83 12.5% 79 9.7% 36 5.1% 60 47 53 7 9% 5.8% 4.6% Determine the null and alternative hypotheses. Họ: H,: Calculate the test statistic, x. x2 =(Round to three decimal places as needed.) Calculate the P-value. P-value = (Round to four decimal places as needed.) State the conclusion. Ho. There V 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 V that the checks are the result of fraud.
Transcribed Image Text:An investigator analyzed the leading digits from 761 checks issued by seven suspect companies. The frequencies were found to be 230, 115, 83, 79, 60, 58, 47, 36, and 53, 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 2 115 17.6% 6. 58 6.7% 4 230 30.1% 83 12.5% 79 9.7% 36 5.1% 60 47 53 7 9% 5.8% 4.6% Determine the null and alternative hypotheses. Họ: H,: Calculate the test statistic, x. x2 =(Round to three decimal places as needed.) Calculate the P-value. P-value = (Round to four decimal places as needed.) State the conclusion. Ho. There V 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 V that the checks are the result of fraud.
Expert Solution
Working
% O E (O-E)^2 (O-E)^2/E
0.301 230 229.061 0.881721 0.003849
0.176 115 133.936 358.5721 2.67719
0.125 83 95.125 147.0156 1.545499
0.097 79 73.817 26.86349 0.36392
0.079 60 60.119 0.014161 0.000236
0.067 58 50.987 49.18217 0.964602
0.058 47 44.138 8.191044 0.185578
0.051 36 38.811 7.901721 0.203595
0.046 53 35.006 323.784 9.249387
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