Obtain the Fraud Buster spreadsheet described in problem 9-90. In the data entry column, use the Excel Rand function to generate random numbers between 1 and 999. Use the formula = RAND()*( 1000- 1)+ 1 for this purpose. Once you have the first random number in cell A1, copy the formula so that you have a data set of 1,000 randomly generated observations. Then run the first- digit test in Fraud Buster.
1. What do the results of the first- digit test indicate?
2. Expand the random number list to 25,000 observations by copying the formula. Run the first- digit test for this new set of observations and compare the results to those you obtained for the set of 1,000 observations. Explain the differences.

  • CreatedMarch 04, 2015
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