Homework Help is Here – Start Your Trial Now!
Math
Statistics
An investigator analyzed the leading digits from 783 checks issued by seven suspect companies. The frequencies were found to be 217, 154, 88, 95, 56, 62, 42, 44, 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 frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 4 217 30.1% 154 17 6% 88 12 5% 95 9.7% 56 7.9% 62 6.7% 42 5.8% 44 5.1% 25 4.6% Determine the null and alternative hypotheses H, Calculate the test statistic, . = (Round to three decimal places as needed.) Calculate the P.value P-value = (Round to four decimal places as needed.) State the conclusion. V Ho There V sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It that the checks are the result of fraud.

An investigator analyzed the leading digits from 783 checks issued by seven suspect companies. The frequencies were found to be 217, 154, 88, 95, 56, 62, 42, 44, 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 frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 4 217 30.1% 154 17 6% 88 12 5% 95 9.7% 56 7.9% 62 6.7% 42 5.8% 44 5.1% 25 4.6% Determine the null and alternative hypotheses H, Calculate the test statistic, . = (Round to three decimal places as needed.) Calculate the P.value P-value = (Round to four decimal places as needed.) State the conclusion. V Ho There V sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It that the checks are the result of fraud.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 13PT
See similar textbooks
icon
Related questions
Question
An investigator analyzed the leading digits from 783 checks issued by seven suspect companies. The frequencies were found to be 217, 154, 88, 95, 56, 62, 42, 44, 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 frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 3 4 6 7 8 9 217 154 88 95 56 62 6.7% 42 44 25 30.1% 17.6% 12.5% 9.7% 7.9% 5.8% 5.1% 4.6% Determine the null and alternative hypotheses. Họ H,: Calculate the test statistic, . (Round to three decimal places as needed.) Calculate the P-value. P-value = (Round to four decimal places as needed.) State the conclusion. Ho. There sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It v that the checks are the result of fraud.
Transcribed Image Text:An investigator analyzed the leading digits from 783 checks issued by seven suspect companies. The frequencies were found to be 217, 154, 88, 95, 56, 62, 42, 44, 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 frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 3 4 6 7 8 9 217 154 88 95 56 62 6.7% 42 44 25 30.1% 17.6% 12.5% 9.7% 7.9% 5.8% 5.1% 4.6% Determine the null and alternative hypotheses. Họ H,: Calculate the test statistic, . (Round to three decimal places as needed.) Calculate the P-value. P-value = (Round to four decimal places as needed.) State the conclusion. Ho. There sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It v that the checks are the result of fraud.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
SEE MORE TEXTBOOKS