7 Leading Digit Benford's Law: Distribution of Leading Digits 6. 9. 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6% 30.1% 00 2.
7 Leading Digit Benford's Law: Distribution of Leading Digits 6. 9. 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6% 30.1% 00 2.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 22EQ
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Tax Cheating? Frequencies of leading digits from IRS tax files are 152, 89, 63, 48, 39, 40, 28, 25, and 27 (corresponding to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively, based on data from Mark Nigrini, who provides software for Benford data analysis). Using a 0.05 significance level, test for goodness-of-fit with Benford’s law. Does it appear that the tax entries are legitimate?
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