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.> C | www.webassign.net/web/Student/Assignment-Responses/submit?dep: 17543862 : Apps D Registration Holds control Panel in Wir BookmarksPhysics-BUS 1120 C 9 How Do l Change M -derivative Nelnet Campus Com EZTV TV Torrents 0 8. 4.285.5 points i Previous Answers BBUnderStat10 10.2.015 My Notes Ask Your T Benford's Law states that the first nonzero digits of numbers drawn at random from a large complex data file have the following probability distribution. First Nonzero Digit Probabilit 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046 Suppose that n = 275 numerical entries were drawn at random from a large accounting file of a major corporation. The first nonzero digits were recorded for the sample First Nonzero Digit Sample Frequen 83 49 32 2225 18 13 17 16 Use a 1% level of significance to test the claim that the distribution of first nonzero digits in this accounting file follows Benford's Law (a) What is the level of significance? 0.01 State the null and alternate hypotheses. O Ho: The distributions are the same. H1: The distributions are different. Ho: The distributions are the same. Hi: The distributions are the same O Ho: The distributions are different. H1: The distributions are different. Ho: The distributions are different. H1: The distributions are the same (b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.) ENG 10:00 PM US 12/6/2017 | Desktop ^

Explanation / Answer

Ans:

(a) level of significance=0.01

State the null and alternate hypotheses.

H0: The distributions are the same.
H1: The distributions are different.

(b)

Test statistic:

Calculated chi square score=3.559
Are all the expected frequencies greater than 5?

Yes

What sampling distribution will you use?

chi-square

What are the degrees of freedom?
df=n-1=9-1=8

(c) P-value=CHIDIST(3.559,8)=0.8946

P-value > 0.100,we fail to reject H0.

we can conclude the distributions are same.

First Nonzero Digit 1 2 3 4 5 6 7 8 9 Total Observed freq(O) 83 49 32 22 25 18 13 17 16 275 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046 1 Expected freq(E) 82.775 48.4 34.375 26.675 21.725 18.425 15.95 14.025 12.65 275 (O-E)^2/E 0.001 0.007 0.164 0.819 0.494 0.010 0.546 0.631 0.887 3.559

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