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?

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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

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