Test claim distribution-first nonzero digits-benford-s law

Reference no: EM13150658

Suppose that n=275 numerical entries were drawn at random from a large accounting file of a major corporation. The first nonzero digits were recorded for the example.

First nonzero digit 1 2 3 4 5 6 7 8 9
Sample frequency 83 49 32 22 25 18 13 17 16

Use a 1% level of significance to test the claim that the distribution of first nonzero digits in the account file does not follow Benford's Law. (In other words, is there an indication of accounting fraud?)

Reference no: EM13150658

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