For items 18 to 21: The first digits of legitimate records such as invoices and expense account claims often follow the distribution known as Benford's Law, as shown below: First Digit 3 4 6 7 8. 1 Probability 0.30 0.18 0.13 0.10 0.08 0.07 0.06 0.05 0.05 A purchasing manager is faking invoices to steer payments to a company owned by her brother. She cleverly generates random numbers to avoid obvious patterns. Here are the counts of first digits in a sample of 45 invoices examined by an auditor: First Digit 1 3 8 9 Count 9. 4 6 7 Is there sufficient evidence to suggest that the first digits of the invoices produced by the manager does not follow Benford's Law? Use a 0.05 level of significance. 4- 2.
For items 18 to 21: The first digits of legitimate records such as invoices and expense account claims often follow the distribution known as Benford's Law, as shown below: First Digit 3 4 6 7 8. 1 Probability 0.30 0.18 0.13 0.10 0.08 0.07 0.06 0.05 0.05 A purchasing manager is faking invoices to steer payments to a company owned by her brother. She cleverly generates random numbers to avoid obvious patterns. Here are the counts of first digits in a sample of 45 invoices examined by an auditor: First Digit 1 3 8 9 Count 9. 4 6 7 Is there sufficient evidence to suggest that the first digits of the invoices produced by the manager does not follow Benford's Law? Use a 0.05 level of significance. 4- 2.
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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Transcribed Image Text:For items 18 to 21: The first digits of legitimate records such as invoices
and expense account claims often follow the distribution known as
Benford's Law, as shown below:
4
6.
7
8.
6.
First Digit
1
Probability
0.30 0.18 0.13 0.10 0.08 0.07 0.06 0.05 0.05
A purchasing manager is faking invoices to steer payments to a company
owned by her brother. She cleverly generates random numbers to avoid
obvious patterns. Here are the counts of first digits in a sample of 45
invoices examined by an auditor:
First Digit
1
3
4
5
6
7
8
9
Count
4
4
4
Is there sufficient evidence to suggest that the first digits of the invoices
produced by the manager does not follow Benford's Law? Use a 0.05
level of significance.
LO
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