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

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

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 letter A B C only.

choices for A

The first digit of the invoices does not follow Benford's Law.
The first digit of the invoices follows Benford's Law.
The first digits of the invoices are independent of Benford's Law.
The generated first digit of the invoices are fake.
choices for B

Reject Ho if test statistic is greater than 17.535
Reject Ho if test statistic is greater than 15.507
Reject Ho if test statistic is greater than 16.919
Reject Ho if test statistic is greater than 19.023

choices for C

15.9699
16.6214
17.1288
18.8088

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.
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] < <
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