Question: Need help finding the test statistic. Thank you Homework: 8-2 MyStatLab: Module Eight Problem Set Save Score: 2.33 of 7 pts 4 of 10 (8

Need help finding the test statistic. Thank you

Need help finding the test statistic. Thank you Homework: 8-2 MyStatLab: Module

Homework: 8-2 MyStatLab: Module Eight Problem Set Save Score: 2.33 of 7 pts 4 of 10 (8 complete) HW Score: 56.36%, 36.63 of 65 pt Yx 12.1.13-T Question Help 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 accompanying table. The probability distribution is now known as Benford's Law. For example, the following distribution represents the first digits in 237 allegedly fraudulent checks written to a bogus company by an employee attempting to embezzle funds from his employer. Complete parts (a) through (c) below. Click the icon to view the tables. test? (a) Because these data are meant to prove that someone is guilty of fraud, what would be an appropriate level of significance when performing a goodness-of-fit Use a = 0.01. Benford's Law? (b) Using the level of significance chosen in part (a), test whether the first digits in the allegedly fraudulent checks obey Benford's Law. Do the first digits obey What are the null and alternative hypotheses? O A. Ho: The distribution of the first digits in the allegedly fraudulent checks does not obey Benford's Law. Hy: The distribution of the first digits in the allegedly fraudulent checks obeys Benford's Law. B. Ho: The distribution of the first digits in the allegedly fraudulent checks obeys Benford's Law. Hy: The distribution of the first digits in the allegedly fraudulent checks does not obey Benford's Law. What is the test statistic? x8 =(Round to three decimal places as needed.) i Distribution of First Digits - X Full data set Distribution of first digits (Benford's Law) Digit 2 3 4 5 Probability 0.301 0.176 0.125 0.097 0.079 Digit 6 8 9 Probability 0.067 0.058 0.051 0.046 First digits in allegedly fraudulent checks First digit Frequency 1 2 3 4 5 6 36 32 45 26 23 36 15 Print Done

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