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

Understand and calculate proration of taxes in real estate transactions.

Assess the financial impact of local improvements and exemptions on annual tax bills.

Convert tax rates into different units of measurement.

Calculate combined gross income from various income sources.

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Definitions:

Synchronous Interaction

Real-time communication where individuals exchange information instantly with minimal delay.

Asynchronous Interaction

Communication where responses do not occur in real-time, allowing participants to engage according to their own schedule.

Utilitarian Consumption

involves buying and using products based on their practical functionality and utility, rather than for pleasure or aesthetic reasons.

B2B Commerce

Business-to-business commerce involving transactions between companies rather than between a company and individual consumers.