Question

In a​ trial, the defendant was accused of issuing checks to a nonexistent vendor. The amounts...

In a​ trial, the defendant was accused of issuing checks to a nonexistent vendor. The amounts of the checks are listed in the accompanying data table in order by row. When testing for​ goodness-of-fit with the proportions expected with​ Benford's law, it is necessary to combine categories because not all expected values are at least 5. Use one category with leading digits of​ 1, a second category with leading digits of​ 2, 3,​ 4, 5, and a third category with leading digits of​ 6, 7,​ 8, 9. Using a

0.05

significance​ level, is there sufficient evidence to conclude that the leading digits on the checks do not conform to​ Benford's law?

LOADING...

Click the icon to view information and the distribution table for​ Benford's law.

The amounts of the checks

Data table

  

​$01,595.45

$23,403.75

$29,397.82

$30,175.03

$37,471.29

$43,099.96

$43,639.87

$47,192.88

$57,810.09

$66,514.51

$70,513.56

$71,774.76

$75,638.21

$75,800.54

$79,270.14

$80,934.71

$85,060.72

$85,260.12

$86,736.15

$89,952.41

$93,277.33

$93,774.29

According to​ Benford's law, a variety of different data sets include numbers with leading​ (first) digits that follow the distribution shown in the table below.

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%

distribution of leading digits

Find the test static, P-value, critical value , x to the power 2

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
According to Benford's Law, a variety of different data sets include numbers with leading (first) digits...
According to Benford's Law, a variety of different data sets include numbers with leading (first) digits that follow the distribution shown in the table below. Test for goodness-of-fit with Benford's Law. Leading Digit 1, 2 , 3, 4 ,5 ,6 ,7, 8, 9 Benford's law: distribution of leading digits 30.1% ​ 17.6% ​ 12.5% ​ 9.7% ​ 7.9% ​ 6.7% ​ 5.8% ​ 5.1% ​ 4.6% ​ When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading...
An investigator analyzed the leading digits from 792 checks issued by seven suspect companies. The frequencies...
An investigator analyzed the leading digits from 792 checks issued by seven suspect companies. The frequencies were found to be 44​,13,55​,71,483,175,55​,19 and 17​, 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 it...
The first significant digit in any number must be​ 1, 2,​ 3, 4,​ 5, 6,​ 7,...
The first significant digit in any number must be​ 1, 2,​ 3, 4,​ 5, 6,​ 7, 8, or 9. It was discovered that first digits do not occur with equal frequency. Probabilities of occurrence to the first digit in a number are shown in the accompanying table. The probability distribution is now known as​ Benford's Law. For​ example, the following distribution represents the first digits in 219 allegedly fraudulent checks written to a bogus company by an employee attempting to...
ou might think that if you looked at the first digit in randomly selected numbers that...
ou might think that if you looked at the first digit in randomly selected numbers that the distribution would be uniform. Actually, it is not! Simon Newcomb and later Frank Benford both discovered that the digits occur according to the following distribution: (digit, probability) (1,0.301),(2,0.176),(3,0.125),(4,0.097),(5,0.079),(6,0.067),(7,0.058),(8,0.051),(9,0.046)(1,0.301),(2,0.176),(3,0.125),(4,0.097),(5,0.079),(6,0.067),(7,0.058),(8,0.051),(9,0.046) The IRS currently uses Benford's Law to detect fraudulent tax data. Suppose you work for the IRS and are investigating an individual suspected of embezzling. The first digit of 166 checks to a supposed company...
You might think that if you looked at the first digit in randomly selected numbers that...
You might think that if you looked at the first digit in randomly selected numbers that the distribution would be uniform. Actually, it is not! Simon Newcomb and later Frank Benford both discovered that the digits occur according to the following distribution: (digit, probability) (1,0.301),(2,0.176),(3,0.125),(4,0.097),(5,0.079),(6,0.067),(7,0.058),(8,0.051),(9,0.046)(1,0.301),(2,0.176),(3,0.125),(4,0.097),(5,0.079),(6,0.067),(7,0.058),(8,0.051),(9,0.046) The IRS currently uses Benford's Law to detect fraudulent tax data. Suppose you work for the IRS and are investigating an individual suspected of embezzling. The first digit of 145 checks to a supposed company...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT