mework: 8-2 MyStatLab: Module Eight Problem Set Save : 0 of 7 pts 4of10(0 comple
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mework: 8-2 MyStatLab: Module Eight Problem Set Save : 0 of 7 pts 4of10(0 complete) HW Score: 0%, 0 of 65 pts 13-T Question Help first significant digit in any number must be 1,2.3,4, 5, 6,7, 8, or 9. It was discovered that frst digits do not occur with equal frequency Probablities of rrence to the first digit in a number are shown in the accompanying table. The probability distibution is now known as Benfords Law For example, the king distribution represents the first digits in 201 allegedly fraudulent checks written to a bogus company by an employee anempting to embezzle funds his employer. Complete parts (a) and (b) below Click the icon to view the tables. Using the level of significance a 001, test whether the frst digits in the allegedly traudulent checks obey Benford's Law. What is the nul hypothesis? A. hThe distribution ofthe first dgts in the ai B. ): The distribution ofthe frst digits in the all C. None of these hat is the alternative hypothesis? Distribution of First Digits Full data set Distribution of H The distribution of the frst digits in the al The distribution of the first digits in the all A. robabil B. H C None of these What is the test statistic First Round to three decimal places as neededinss as neededFreaue 36 45 Print Done Enter your answer in the answer box and then click Check Answer parts start o2 enovo 8Explanation / Answer
Answer:
Based on the given information:
Observed frequency based on alleged fradulent checks
Degree of freedom = number of categories - 1 = 9 -1 = 8
Probability correospoding to Chi square value of 37.617 with 8 degree of freedom is < 0.00001
The P-Value is < 0.00001 which is less than the significance level of 0.01, therefore null hypothesis is rejected.
The observed frequency based on alleged fraudulent checks is different from Benford's law.
First digit Frequency Probability 1 36 0.179 2 25 0.124 3 45 0.224 4 20 0.100 5 24 0.119 6 17 0.085 7 9 0.045 8 16 0.080 9 9 0.045 Total 201Related Questions
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