Answer 1. Reject H0. There is sufficient evidence to warrant rejection of the cl

Question

Answer

1.  Reject H0. There is sufficient evidence to warrant rejection of the claim that the leading digits are from a population with a distribution that conforms to Benford's law. It does appear that the checks are the result of fraud.
2.  Ho: The leading digits are from a population that conforms to Benford's law.

H1: At least one leading digit has a frequency that does not conform to Benford's law.
3.  
X2 = 11.705
4.  P-value = 0.3620

Leading Digit Actual Frequency Benford's Law. Distribution of Leading Digits 4 5 9 216 148 84 89 57 60 46 43 30.1% 5760 443 32 5.8% 17.6% 12.5% 9.7% 7.9% 6.7% 5.1% 4.6%

Explanation / Answer

Ans:

2 and 4 are correct.

Explanantion:

Ho: The leading digits are from a population that conforms to Benford's law.

H1: At least one leading digit has a frequency that does not conform to Benford's law.

(2 is correct)

3)ch square=8.770

So, 3 is incorrect.

df=9-1=8

p-value=CHIDIST(8.770,8)=0.3620

(4 is correct)

As,p-value>0.05,we fail to reject H0.

(1 is incorrect)

Obserevd(O) p Expected(E)=p*775 (O-E)^2/E 1 216 0.301 233.275 1.279 2 148 0.176 136.4 0.987 3 84 0.125 96.875 1.711 4 89 0.097 75.175 2.542 5 57 0.079 61.225 0.292 6 60 0.067 51.925 1.256 7 46 0.058 44.95 0.025 8 43 0.051 39.525 0.306 9 32 0.046 35.65 0.374 Total 775 1 775 8.770

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