Faked numbers in tax returns, payment records, invoices, expense account claims,

Question

Faked numbers in tax returns, payment records, invoices, expense account claims, and any other settings often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a distribution known as Benford's law. Here it is (note that a first digit can't be 0): Using the probabilities for Benford's law, find the probability that a first digit is anything other than 4. Give your answer to three decimal places. Fill in the blank: The probability that a first digit is anything other than 4 is: _______

Explanation / Answer

find the probability that a first digit is anything other than 4

we have that there are 9 numbers and only 1 number can be 4

so the probability that the 1 digit is 4 is 1/9

so

The probability that a first digit is anything other than 4 is 1 - 1/9 = 8/9

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