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What is the test statistic? What is the P-Value of the test? Using the P-Value a

ID: 3224349 • Letter: W

Question

What is the test statistic?
What is the P-Value of the test?
Using the P-Value approach, compare the P-Value with the given a=0.05 level of significance. Based on these results, do the first digits obey the Benford's Law?
IE Question Help 12.1.13-T digit be 1.2, 3 5 6. 7.8. or 9. It was that first digits do not occur with equal frequency. Probabilities of occurrence to the first digit in a number are shown in the accompanying table. The probability distribution is now known as B Law For example, the folowing represents the first digits in 221 allegedly fraudulent checks writen to a bogus company by an employee attempting to embezzle funds from his employer Complete parts and (b) below. EA Click the icon to view the tables.

Explanation / Answer

from above: test stat X2 =46.5848

p value =0.0000

as p vlaue is less then 0.05 level ; first digit does not follow benford's law

observed Expected Chi square Digit Probability O E=total*p =(O-E)^2/E 1 0.301 42.00 66.52 9.04 2 0.176 32.00 38.90 1.22 3 0.125 28.00 27.63 0.01 4 0.097 26.00 21.44 0.97 5 0.079 23.00 17.46 1.76 6 0.067 36.00 14.81 30.33 7 0.058 9.00 12.82 1.14 8 0.051 16.00 11.27 1.98 9 0.046 9.00 10.17 0.13 221 221 46.5848
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