Question

According to Benford's law, the probability that the first digit of the amount of a randomly...

According to Benford's law, the probability that the first digit of the amount of a randomly chosen invoice is a 1 or a 2 is 0.477. You examine 79 invoices from a vendor and find that 26 have first digits 1 or 2. If Benford's law holds, the count of 1s and 2s will have the binomial distribution with n = 79 and p = 0.477. Too few 1s and 2s suggests fraud. What is the approximate probability of 26 or fewer 1s and 2s if the invoices follow Benford's law? (Use the normal approximation. Round your answer to four decimal places.)

This answer is NOT = 0.0058677 [since from z table], I asked this question before and the answer is incorrect.

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Benford's law, also known as the first‑digit law, represents a probability distribution of the leading significant...
Benford's law, also known as the first‑digit law, represents a probability distribution of the leading significant digits of numerical values in a data set. A leading significant digit is the first occurring non‑zero integer in a number. For example, the leading significant digit in the number 127127 is 11. Let this leading significant digit be denoted ?x. Benford's law notes that the frequencies of ?x in many datasets are approximated by the probability distribution shown in the table. ?x 11...
It is a striking fact that the first digits of numbers in legitimate records often follow...
It is a striking fact that the first digits of numbers in legitimate records often follow a distribution known as Benford's Law, shown below. First digit 1 2 3 4 5 6 7 8 9 Proportion 0.285 0.186 0.126 0.084 0.069 0.067 0.034 0.039 0.110 Fake records usually have fewer first digits 1, 2, and 3. What is the approximate probability, if Benford's Law holds, that among 1153 randomly chosen invoices there are no more than 670 in amounts with...
It is a striking fact that the first digits of numbers in legitimate records often follow...
It is a striking fact that the first digits of numbers in legitimate records often follow a distribution known as Benford's Law, shown below. First digit 1 2 3 4 5 6 7 8 9 Proportion 0.28 0.152 0.129 0.088 0.05 0.07 0.042 0.035 0.154 Fake records usually have fewer first digits 1, 2, and 3. What is the approximate probability, if Benford's Law holds, that among 1189 randomly chosen invoices there are no more than 688 in amounts with...
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...
Benford's Law states that the first nonzero digits of numbers drawn at random from a large...
Benford's Law states that the first nonzero digits of numbers drawn at random from a large complex data file have the following probability distribution.† First Nonzero Digit 1 2 3 4 5 6 7 8 9 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046 Suppose that n = 275 numerical entries were drawn at random from a large accounting file of a major corporation. The first nonzero digits were recorded for the sample. First Nonzero Digit 1 2...
The first significant digit in any number must be​ 1, 2,​ 3, 4,​5, 6,​ 7, 8,...
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 232 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds...
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 201 checks to a supposed company...
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...
Recall that Benford's Law claims that numbers chosen from very large data files tend to have...
Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT