Focus Problem: Benfords Law Again suppose you are the | StudySoup
Understandable Statistics | 9th Edition | ISBN: 9780618949922 | Authors: Charles Henry Brase, Corrinne Pellillo Brase

Table of Contents

1
Getting Started
1.1
Getting Started
1.2
Getting Started
1.3
Getting Started

2
Organizing Data
2.1
Organizing Data
2.2
Organizing Data
2.3
Organizing Data

3
Organizing Data
3.1
Averages and Variation
3.2
Averages and Variation
3.3
Organizing Data

4
Elementary Probability Theory
4.1
Elementary Probability Theory
4.2
Elementary Probability Theory
4.3
Elementary Probability Theory

5
The Binomial Probability Distribution and Related Topics
5.1
The Binomial Probability Distribution and Related Topics
5.2
The Binomial Probability Distribution and Related Topics
5.3
The Binomial Probability Distribution and Related Topics
5.4
The Binomial Probability Distribution and Related Topics

6
NORMAL DISTRIBUTIONS
6.1
NORMAL DISTRIBUTIONS
6.2
NORMAL DISTRIBUTIONS
6.3
NORMAL DISTRIBUTIONS
6.4
NORMAL DISTRIBUTIONS

7
INTRODUCTION TO SAMPLING DISTRIBUTIONS
7.1
INTRODUCTION TO SAMPLING DISTRIBUTIONS
7.2
INTRODUCTION TO SAMPLING DISTRIBUTIONS
7.3
INTRODUCTION TO SAMPLING DISTRIBUTIONS

8
ESTIMATION
8.1
ESTIMATION
8.2
ESTIMATION
8.3
ESTIMATION

9
ESTIMATION
9.1
HYPOTHESIS TESTING
9.2
HYPOTHESIS TESTING
9.3
HYPOTHESIS TESTING
9.4
HYPOTHESIS TESTING
9.5
ESTIMATION

10
CORRELATION AND REGRESSION
10.1
CORRELATION AND REGRESSION
10.2
CORRELATION AND REGRESSION
10.3
CORRELATION AND REGRESSION
10.4
CORRELATION AND REGRESSION

11
CHI-SQUARE AND F DISTRIBUTIONS
11.1
CHI-SQUARE AND F DISTRIBUTIONS
11.2
CHI-SQUARE AND F DISTRIBUTIONS
11.3
CHI-SQUARE AND F DISTRIBUTIONS
11.4
CHI-SQUARE AND F DISTRIBUTIONS
11.5
CHI-SQUARE AND F DISTRIBUTIONS
11.6
CHI-SQUARE AND F DISTRIBUTIONS

12
NONPARAMETRIC STATISTICS
12.1
NONPARAMETRIC STATISTICS
12.2
NONPARAMETRIC STATISTICS
12.3
NONPARAMETRIC STATISTICS
12.4
NONPARAMETRIC STATISTICS

Textbook Solutions for Understandable Statistics

Chapter 9.3 Problem 6

Question

Focus Problem: Benfords Law Again suppose you are the auditor for a very large corporation. The revenue file contains millions of numbers in a large computer data bank (see 5). You draw a random sample of numbers from this file and have a first nonzero digit of 1. Let p represent the population proportion of all numbers in the computer file that have a leading digit of 1. i. Test the claim that p is more than 0.301. Use ii. If p is in fact larger than 0.301, it would seem there are too many numbers in the file with leading 1s. Could this indicate that the books have been cooked by artificially lowering numbers in the file? Comment from the point of view of the Internal Revenue Service. Comment from the perspective of the Federal Bureau of Investigation as it looks for profit skimming by unscrupulous employees. iii. Comment on the following statement: If we reject the null hypothesis at level of significance , we have not proved to be false. We can say that the probability is that we made a mistake in rejecting Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

Solution

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The first step in solving 9.3 problem number 6 trying to solve the problem we have to refer to the textbook question: Focus Problem: Benfords Law Again suppose you are the auditor for a very large corporation. The revenue file contains millions of numbers in a large computer data bank (see 5). You draw a random sample of numbers from this file and have a first nonzero digit of 1. Let p represent the population proportion of all numbers in the computer file that have a leading digit of 1. i. Test the claim that p is more than 0.301. Use ii. If p is in fact larger than 0.301, it would seem there are too many numbers in the file with leading 1s. Could this indicate that the books have been cooked by artificially lowering numbers in the file? Comment from the point of view of the Internal Revenue Service. Comment from the perspective of the Federal Bureau of Investigation as it looks for profit skimming by unscrupulous employees. iii. Comment on the following statement: If we reject the null hypothesis at level of significance , we have not proved to be false. We can say that the probability is that we made a mistake in rejecting Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?
From the textbook chapter HYPOTHESIS TESTING you will find a few key concepts needed to solve this.

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full solution

Title Understandable Statistics 9 
Author Charles Henry Brase, Corrinne Pellillo Brase
ISBN 9780618949922

Focus Problem: Benfords Law Again suppose you are the

Chapter 9.3 textbook questions

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