Reference no: EM132096756

Problem: What formula would I use to compute the following problem if 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 table below. The probability distribution is now known as?Benford's Law. The following distribution represents the first digits in 233 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Using the level of significance α=0.10?, what formula do I use to test whether the first digits in the allegedly fraudulent checks obeying? Benford's Law and what would the null? hypothesis and the alternative hypothesis? I also then need to know how to get the find what the test statistic is X ²₀ and the P-value.

                            Distribution of first digits (Benford's Law)

Digit                               1               2                3                 4                     5

Probability                   0.301        0.176         0.125         0.097              0.079

Digit                               6                7                8                9

Probability                  0.067         0.058         0.051         0.046

                            First digits in allegedly fraudulent checks

First digit             1          2           3           4            5          6         7         8          9

Frequency          42        32         45         20          24        36        9        16         9