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The distribution of the leading digits of company accounting figures often follows what is known as "Benford's Law". Ben
Posted: Sun Sep 05, 2021 5:13 pm
by answerhappygod
- The Distribution Of The Leading Digits Of Company Accounting Figures Often Follows What Is Known As Benford S Law Ben 1 (41.94 KiB) Viewed 88 times
The distribution of the leading digits of
company accounting figures often follows what is known as "Benford's Law". Benford's Law states that the distribution of leading digits is not uniform, but rather follows the following probability distribution: P(d) = log10 (1+à) for d=1,2,...,9. A random sample was taken of a
company's accounting figures, and the distribution of the observed leading digits is given in the following code: d = 1:9 counts = c(785, 468, 377, 247, 229, 177, 156, 128, 133) dat = data.frame(d, counts) Perform an appropriate test to check whether or not this random sample of leading digits follows Benford's law. Report the test statistic you find in the answer box below (to 2 decimal places).