Benford's law states that the probability distribution of the first digits of many items (e.g. populations and expenses) is not uniform, but has the probabilities shown in this table. Business expenses tend to follow Benford's Law, because there are generally more small expenses than large expenses. Perform a "Goodness of Fit" Chi-Squared hypothesis test (a = 0.05) to see if these values are consistent with Benford's Law. If they are not consistent, it there might be embezzelment. Complete this table. The sum of the observed frequencies is 118 Observed X Frequency (Counts) Benford's Law P(X) Expected Frequency (Counts) 1 37 .301 2 29 .176 3 13 .125 47 .097 5 5 .079 6 6 .067 7 10 .058 8 3 .051 9 8 .046 Report all answers accurate to three decimal places. What is the chi-square test-statistic for this data? (Report answer accurate to three decimal places.) %3D What is the P-value for this sample? (Report answer accurate to 3 decimal places.) P-value = The P-value is... O less than (or equal to) a greater than a This P-Value leads to a decision to
Benford's law states that the probability distribution of the first digits of many items (e.g. populations and expenses) is not uniform, but has the probabilities shown in this table. Business expenses tend to follow Benford's Law, because there are generally more small expenses than large expenses. Perform a "Goodness of Fit" Chi-Squared hypothesis test (a = 0.05) to see if these values are consistent with Benford's Law. If they are not consistent, it there might be embezzelment. Complete this table. The sum of the observed frequencies is 118 Observed X Frequency (Counts) Benford's Law P(X) Expected Frequency (Counts) 1 37 .301 2 29 .176 3 13 .125 47 .097 5 5 .079 6 6 .067 7 10 .058 8 3 .051 9 8 .046 Report all answers accurate to three decimal places. What is the chi-square test-statistic for this data? (Report answer accurate to three decimal places.) %3D What is the P-value for this sample? (Report answer accurate to 3 decimal places.) P-value = The P-value is... O less than (or equal to) a greater than a This P-Value leads to a decision to
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
Related questions
Question
Transcribed Image Text:Benford's law states that the probability distribution of the first digits of many items (e.g. populations and
expenses) is not uniform, but has the probabilities shown in this table.
Business expenses tend to follow Benford's Law, because there are generally more small expenses than large
expenses.
Perform a "Goodness of Fit" Chi-Squared hypothesis test (a = 0.05) to see if these values are consistent with
Benford's Law.
If they are not consistent, it there might be embezzelment.
Complete this table. The sum of the observed frequencies is 118
Observed
X Frequency
(Counts)
Expected
Frequency
(Counts)
Benford's
Law P(X)
1
37
.301
2 29
.176
3
13
.125
.097
5 5
.079
66
.067
10
.058
8 3
.051
.046
Report all answers accurate to three decimal places.
What is the chi-square test-statistic for this data? (Report answer accurate to three decimal places.)
What is the P-value for this sample? (Report answer accurate to 3 decimal places.)
P-value =
The P-value is...
O less than (or equal to) a
O greater than a
This P-Value leads to a decision to.
MacBook Pro
Q Search or enter website name
@
#
$
2
&
*
3
4
6
7
8
Q
W
E
Y
A
S
F
H
Transcribed Image Text:Report all answers accurate to three decimal places.
What is the chi-square test-statistic for this data? (Report answer accurate to three decimal places.)
What is the P-value for this sample? (Report answer accurate to 3 decimal places.)
P-value =
The P-value is...
O less than (or equal to) a
O greater than a
This P-Value leads to a decision to...
O reject the null hypothesis
O fail to reject the null hypothesis
As such, the final conclusion is that...
There is sufficient evidence to warrant rejection of the claim that these expenses are consistent with
Benford's Law..
There is not sufficient evidence to warrant rejection of the claim that these expenses are consistent
with Benford's Law..
> Next Question
MacBook Pro
Q Search or enter website name
@
#
$
&
*
4
7
8
E
T
Y
F
G
H
J
K
R
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
