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6. Creating a bar graph and Benfords Law Aa Aa Heres an interesting exercise: Write down all the numbers you see on the front page of your college newspaper (excluding the page number). Calculate the proportion of numbers beginning with 1 and the proportion of numbers beginning with 4. Which proportion is greater? Your intuition may suggest that you are equally likely to find both kinds of numbers, so the proportions should be roughly the same. However, more often than not, the proportion of numbers beginning with 1 is about three times that of numbers beginning with 4 This is a consequence of a phenomenon known as Benfords Law, which was observed independently by mathematician Simon Newcomb in 1881 and General Electric physicist Frank Benford in 1938. A set of numbers obeying Benfords Law would have the relative frequency distribution shown in Table 1. In addition, a bar graph of the distribution is shown to the right of Table 1 Table 1 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046 Tota 1.000 RELATIVE FREQUENCY 0.40 0.35 0.30 0.25 0.20 0.15 4 7 0.05 0.00 FIRST DIGIT

Benfords Law has been observed in number samples from a variety of sources, ranging from tables of physical constants and census statistics to stock market prices and accounting figures Suppose a researcher believes that he can use Benfords Law to detect data entry errors. Accurate data entries generally follow Benfords Law. If there are data entry errors, they are likely to deviate from it. In a monthly check for data entry errors, the researcher double-checks 136 data entries. Their frequency distribution according to first digits is shown in Table 2 The data in Table 2 are partially plotted on the following graph. Complete the bar graph for the first-digit frequency distribution of the 136 data entries by plotting an additional six bars. Click and drag a blue rectangle (circle symbols) on the graph for each bar. Drag the corners to increase or decrease the bar height. (Hint: The bars should lie between the two grid lines on either side of each first digit. You can adjust the size of the bar on another part of the graph before dragging it to rest on either side of the appropriate first digit. Adjust each bar so that it is one grid square wide. You can ignore the horizontal coordinate of each of the points you plot; it refers only to the number of grid lines, not the digit youre plotting. Do NOT ignore the vertical coordinates because that shows the frequency that you are trying to graph.) Table 2 4 4 5 17 6 29 7 22 8 25 9 27 Total 136 FREQUENCY 30 25 20 FIRST DIGIT Clear ALL

For the preceding data, the first digit with the highest frequency is distribution follows Benfords Law, the relative frequency expected for this particular first digit is expected frequency is abouft If the , and the Its relative frequency is occurrences

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Answer #1

Bar graph:

Bar graph 30 25 20 15 10 FIRST DIGIT

For the preceding data the first digit with the highest frequency is 6.

Its relative frequency is 29/136 = 0.2132.

If the distribution follows Benford's Law, the relative frequency expected for this particular first digit is 0.067, and the expected frequency is about 136*0.067 = 9.112 = 9 occurrences.

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