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STAT - Module 6 problem 5




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 digit 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 Bedford?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).;Click the icon to view the tables.;a) Using the level of significance = 0.05, test whether the;first digits in the allegedly fraudulent checks obey Benford's law. Do the;first digits obey the Beford's law?;No;Yes;b) Based on th results of part (a), could one think that the;employee is guilty of embezzlement?;Yes;No


Paper#62132 | Written in 18-Jul-2015

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