The first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8, or 9.

Question

The first significant digit in any number must be 1, 2, 3, 4, 5, 6, 7, 8, or 9. It was discovered 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 Benford's Law. For example, the following distribution represents the first digits in 205 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Complete parts (a) and (b) below. Using the level at significance alpha = 0 01, test whether the first digits in the allegedly fraudulent checks obey Benford's Law. What is the null hypothesis? H_0: The distribution of the first digits in the allegedly fraudulent checks do not obey Benford's Law. H_0: The distribution of the first digits in the allegedly fraudulent checks obey Benford's Law. None of the these.

Explanation / Answer

A null hypothesis is an equation of equality. Therefore it will say that the numbers Obey the law. So correct answer is B

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.