Show transcribed image text An investigator analyzed the leading digits from 791 checks issued by seven suspect companies. The frequencies were found to be 254, 151, 79, 91, 69, 54, 44, 42, and 7, 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 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? 3 79 12.5% 6 54 6.7% 8 42 5.1% 2 Leading Digit Actual Frequenc Benford's Law: Distribution of Leading Diaits 254151 30.1% 91 9.7% 69 7.9% 44. 5.8% 17.6% 4.6% Determine the null and alternative hypotheses 0 Calculate the test statistic, χ X2-1 (Round to three decimal places as needed.)
An investigator analyzed the leading digits from 791 checks issued by seven suspect companies. The frequencies were found to be 254, 151, 79, 91, 69, 54, 44, 42, and 7, 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 0.05 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? 3 79 12.5% 6 54 6.7% 8 42 5.1% 2 Leading Digit Actual Frequenc Benford's Law: Distribution of Leading Diaits 254151 30.1% 91 9.7% 69 7.9% 44. 5.8% 17.6% 4.6% Determine the null and alternative hypotheses 0 Calculate the test statistic, χ X2-1 (Round to three decimal places as needed.)
