3. Benford's law distribution Faked numbers in tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law. Call the first digit of a randomly chosen record X for short. The probability distribution for X is shown here (note that a first digit can't be 0). Make a histogram of the probability distribution. Describe its shape. 3 9 First digit 1 2 4 5 6 7 8 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046
3. Benford's law distribution Faked numbers in tax returns, invoices, or expense account claims often display patterns that aren't present in legitimate records. Some patterns, like too many round numbers, are obvious and easily avoided by a clever crook. Others are more subtle. It is a striking fact that the first digits of numbers in legitimate records often follow a model known as Benford's law. Call the first digit of a randomly chosen record X for short. The probability distribution for X is shown here (note that a first digit can't be 0). Make a histogram of the probability distribution. Describe its shape. 3 9 First digit 1 2 4 5 6 7 8 Probability 0.301 0.176 0.125 0.097 0.079 0.067 0.058 0.051 0.046
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.2: Introduction To Probability
Problem 33E
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Calculate and interpret the standard deviation of X
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