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 232 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer Complete parts (a) and (b) below. Click the icon to view the tables. (a Using the level of significance = 0.01, test whether the first digits in the allegedly fraudulent checks obey Benford's Law. What is the null hypothesis? OA. Ho: The distribution of the first digits in the allegedly fraudulent checks do not obey Benford's Law. OB. Ho: The distribution of the first digits in the allegedly fraudulent checks obey Benford's Law. C. None of these.

Explanation / Answer

Since we want to check that whether the first digits in the allegedly fraudlant checks obeys Benford's law, so this will itself be the null hyposthesis.

Thus option B is correct.

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