Focus Problem: Benford’s Law Please read the Focus Problem at the beginning of this chapter. Recall that Benford’s Law claims that numbers chosen from very large data fi les tend to have “1” as the fi rst nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data fi le, the probability of getting a number with

“1” as the leading digit is about 0.301 (see the reference in this chapter’s Focus Problem).

Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer fi le. Let us say you took a random sample of n 5 215 numerical entries from the fi le and r 5 46 of the entries had a fi rst nonzero digit of