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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 1 First Digit 1 2 Probability 30% 18% 13% 10% 8% Count 6 2 3 3 4 4 6 4 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: 7 5 5 6 6 7 7% 6% 5% 5% 8 9 7 3 56 6 8 4 9 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.

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 1 First Digit 1 2 Probability 30% 18% 13% 10% 8% Count 6 2 3 3 4 4 6 4 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: 7 5 5 6 6 7 7% 6% 5% 5% 8 9 7 3 56 6 8 4 9 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.

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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Please answer within 30min thanks.

answer only letter D

choices for D
Do not relect Ho. The datadows not follow Benford's Law.

Reject Ho. Therefore, there is sufficient evidence that the first diaits of the generated invoices do not follow Benford's Law
Do not reject Ho. here Is Insufficient evidence to suggest that the first digit of the invoices deviates from Bentord's Law.
Reject Ho. Therefore the generated invoice numbers are not fake.

 

A. What is an appropriate null hypothesis for this test? [Select] B. What is the rejection rule? [Select] C. What is the value of the test statistic? [Select] D. What is the conclusion to this test? [Select] < <
Transcribed Image Text:A. What is an appropriate null hypothesis for this test? [Select] B. What is the rejection rule? [Select] C. What is the value of the test statistic? [Select] D. What is the conclusion to this test? [Select] < <
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 1 Probability 30% 18% 2 First Digit 1 2 3 Count 6 4 4 3 6 6 13% 4 4 7 5 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: 6 10% 8% 7% 5 7 8 9 6% 5% 3 5 6 5% 6 7 8 9 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.
Transcribed Image Text: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 1 Probability 30% 18% 2 First Digit 1 2 3 Count 6 4 4 3 6 6 13% 4 4 7 5 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: 6 10% 8% 7% 5 7 8 9 6% 5% 3 5 6 5% 6 7 8 9 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.
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