Question

Recall that Benfords Law claims that numbers chosen from very large data files tend to have 1 as the first nonzero digit d
Sketch the sampling distribution and show the area corresponding to the P-value. -2 0 2 o -2 0 2 4 0-4 -2 0 N 0-4 -2 0 2
level a? (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data s
0 0
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Answer #1

i)a ) level of significance =0.10

O Ho: P = 0.301; H: P > 0.301

b()

O The standard normal, since np > 5 and ng > 5.

sample success x   = 87
sample size          n    = 226
std error σp =√(p*(1-p)/n) = 0.0305
sample proportion p̂ = x/n= 0.3850
z =(p̂-p)/σp=(0.385-0.301)/0.385= 2.75

c)

p value                          = 0.0030 (from excel:1*normsdist(-2.75)

0-4 -2 0 2

d)

O At the a= 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.

e)

There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenu

ii)

Yes. There seems to be too many entries with a leading digit 1.

iii)

We have not proved Me to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.

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