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Answer: Benford’s Law. According to Benford’s law, a

Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola ISBN: 9780321836960 18

Solution for problem 23BSC Chapter 11.2

Elementary Statistics | 12th Edition

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Elementary Statistics | 12th Edition | ISBN: 9780321836960 | Authors: Mario F. Triola

Elementary Statistics | 12th Edition

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Problem 23BSC

Benford’s Law. According to Benford’s law, a variety of different data sets include numbers with leading (first) digits that follow the distribution shown in the table below. In Exercise?, ?test for goodness-offit with Benford’s law. L e a d i n g D i g i t B e n f o r d ’ s L a w : D i s t r i b u t i o n o f L e a d i n g D i g i t s Tax Cheating?? Frequencies of leading digits from 1RS 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 sells 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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Problem 23BSC Tax Cheating Frequencies of leading digits from 1RS 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...

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Chapter 11.2, Problem 23BSC is Solved
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Textbook: Elementary Statistics
Edition: 12
Author: Mario F. Triola
ISBN: 9780321836960

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Answer: Benford’s Law. According to Benford’s law, a

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