Question

Review Quiz: Unit 5 Practice Test Close 12 of 12 Test Score: 77.18%, 9.26 of 12 pts Score: 0.43 of 1 pt 11.1.21-T An investigator analyzed the leading digits from 763 checks issued by seven suspect companies. The frequencies were found to be 216, 145, 101, 57, 51, 58, 49, 43 and 43, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit 1 2 3 4 5 6 7 8 9 Actual Frequency 216 145 101 57 51 58 49 43 43 Benford's Law: Distribution of Leading Digits 30.1% 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6% Calculate the test statistic. x2 x = 10.980 (Round to three decimal places as needed.) Calculate the P-value P-value = 0.2029' (Round to four decimal places as needed.) State the conclusion. Do not reject' Ho. There is not 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 not appear that the checks are the result of fraud. Question is complete. Tap on the red indicators to see incorrect answers.

Answer 1

Solution Hoding on the check amount doesnot appear sou to www from baud Ho not Ho. leading Digit 2 13 14 15 16 17 189 1 observed (0) 216 145 104 57 57 58 49 43 43 , Terpected lo 229.66 134.29.95.3874.0160.28 54.42144.25 3.94 35.10 biz bolal obrenation x Alleeding capitis - 763x plith leading digito Di Test Glalisha (24. 20;-&;)? . Is 9. 299) degree of predoma 9-1 = 8. apvalue=2(2) 19229) - 0.014116 - 10.01411 Ei Hen, 2 = 0.0d en po volue se Conclusion : Donod Rejord Ho. Bare is not suttivent Evidence to worrent rejection of the Claim that the leading digits are from a population with a diskibution that conforms to Benford a law. It doarst appear that the checks are the result of brand.