Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. an investigator analyzed the leading digits from 7

An investigator analyzed the leading digits from 792 checks issued by seven suspect companies The...

70.2K

Verified Solution

Question

Statistics

image

An investigator analyzed the leading digits from 792 checks issued by seven suspect companies The frequencies were found to be 255 143 110 87 49 46 46 41 and 15 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 1 2 3 4 5 6 7 8 9 255 143 110 87 49 46 46 41 15 Frequency Benford s Law 30 1 17 6 12 5 9 7 7 9 6 7 5 8 5 1 4 6 Distribution of Leading Digits Determine the null and alternative hypotheses Ho The leading digits are from a population that conforms to Benford s law H At least one leading digit has a frequency that does not conform to Benford s law Calculate the test statistic x x Round to three decimal places as needed

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question (06+06+06+06 ) - a) Examine and Identify the cause of the followings: i) The air blast...

Electrical Engineering
Q

20 In the circuit shown in the figure C C C 2C C 3C C...

Physics
Q

A manufacturing company which produces laminate for countertops is interested in studying the relationship between...

Statistics
Q

LVV maining Time: 2 hours. 24 minutes, 00 seconds....

Accounting
Q

Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely...

Accounting
Q

The FBI employs deception to collect information during its investigations. Do you believe it is...

Accounting
Q

On July 5. Fawn Company recorded sales of merchandise inventory on account, $65,000. The sales...

Accounting
Q

sove the response Question 12 Question 17 In which of the following situations does the...

Accounting
Q

Problem 6 Santa Fe Lessee Co. enters a non-cancelable lease agreement with Zion Co. on...

Accounting
Q

On January 1, 2023, Pack Corp. paid $750,000 to purchase 100% of the common stock...

Accounting
Q

Andrew Company sold goods to customers in 2017 at selling price of $1,800,000. 60% of...

Accounting
Q

Return to the Sport Hotel example in the course notes, the lesson, and in Chapter...

Finance