Benford's Law Claims That Numbers Chosen from Very Large Data $\alpha$

question 7

Multiple Choice

Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n =276 numerical entries from the file and r = 95 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. Test the claim that p is less than 0.301 by using $\alpha$ = 0.1. What is the level of significance?

• A)0.100
• B)0.950
• C)0.800
• D)0.900
• E)0.200

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Definitions:

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, typically measured in millimeters of mercury (mmHg).

Capillaries

Microscopic blood vessels that facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Pulse

The rhythmic expansion and contraction of arteries each time the heart beats, often felt at various points on the body as a heartbeat.

Carotid Artery

A major artery supplying blood to the head and neck region, divided into internal and external branches.