32. Detecting Fraud When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of amounts on checks from companies that were suspected of fraud. Among 784 checks, 479 had amounts with leading digits of 5, but checks issued in the normal course of honest transactions were expected to have 7.9% of the checks with amounts having leading digits of 5. Is there strong evidence to indicate that the check amounts are significantly different from amounts that are normally expected? Explain?

6-6 BEYOND THE BASICS