Benford’s Law gives the distribution of leading digits in a variety of different data sets. An...
Benford’s Law gives the distribution of leading digits in a variety of different data sets. An investigator for the Brooklyn district attorney analyzed the digits of the amounts of 784 checks issued by seven suspect companies.
Leading digit 1 2 3 4 5 6 7 8 9
Benford’s Law 30.1% 17.6 12.5 9.7 7.9 6.7 5.8 5.1 4.6
Observed counts 0 15 0 76 479 183 8 23 0
1. Consider the claim that the amounts on those checks have leading digits that follow Benford’s law. If that claim is true, what is the expected count for each leading digit?
2. Test the claim that those checks are for amounts with leading digits that follow Benford’s Law.
3. Does it appear that the checks are the result of fraud?
Homework Answers
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Benford’s Law gives the distribution of leading digits in a
variety of different data sets. An...
An investigator analyzed the leading digits from 799 checks issued by seven suspect companies. The frequencies...
An investigator analyzed the leading digits from 799 checks issued by seven suspect companies. The frequencies were found to be 3, 18, 3, 87, 322, 328, 8, 20, and 10, 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 0.10 significance level to test for...
When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts...
When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts on checks from companies that were suspected of fraud. Among 784 checks, 61% had amounts with leading digits of 5. A 99% confidence interval estimate of the proportion of checks having amounts with leading digits of 5 is 0.565<p< 0.655 (using 478). When checks are issued in the normal course of honest transactions, it is expected that 7.9% of the checks will have amounts...
An investigator analyzed the leading digits from 784 checks issued by seven suspect companies.
An investigator analyzed the leading digits from 784 checks issued by seven suspect companies. The frequencies were found to be 248, 150, 99, 57, 74, 61, 46, 39, and 10, 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 0.025 significance level to test for goodness-of-fit with Benford's law. Does...
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Review Quiz: Unit 5 Practice Test Close 12 of 12 Test Score: 77.18%, 9.26 of 12 pts Score: 0.43 of 1 pt 11.1.21-T An investigator analyzed the leading digits from 763 checks issued by seven suspect companies. The frequencies were found to be 216, 145, 101, 57, 51, 58, 49, 43 and 43, 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...
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An investigator analyzed the leading digits from 773 checks issued by seven suspect companies. The frequencies were found to be 243, 140, 114, 63, 59, 46, 49, 3 and 25, 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 requencies expected with Benford's law shown below, the check amounts appear to result from fraud Use a 0.01 significance level to test for...
An investigator analyzed the leading digits from 799 checks issued by seven suspect companies. The frequencies were found to be 3, 18, 3, 87, 322, 328, 8, 20, and 10, 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 0.10 significance level to test for...
When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts on checks from companies that were suspected of fraud. Among 784 checks, 61% had amounts with leading digits of 5. A 99% confidence interval estimate of the proportion of checks having amounts with leading digits of 5 is 0.565<p< 0.655 (using 478). When checks are issued in the normal course of honest transactions, it is expected that 7.9% of the checks will have amounts...
An investigator analyzed the leading digits from 784 checks issued by seven suspect companies. The frequencies were found to be 248, 150, 99, 57, 74, 61, 46, 39, and 10, 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 0.025 significance level to test for goodness-of-fit with Benford's law. Does...
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An investigator analyzed the leading digits from 773 checks issued by seven suspect companies. The frequencies were found to be 243, 140, 114, 63, 59, 46, 49, 3 and 25, 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 requencies expected with Benford's law shown below, the check amounts appear to result from fraud Use a 0.01 significance level to test for...
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