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

question 4

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 = 275 numerical entries from the file and r = 67 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 does the area of the sampling distribution corresponding to your P-value look like?

• A)The area not in the left tail and the right tail of the standard normal curve.
• B)The area not including the left tail of the standard normal curve.
• C)The area not including the right tail of the standard normal curve.
• D)The area in the left tail and the right tail of the standard normal curve.
• E)The area in the left tail of the standard normal curve.

Understand how the concept of indifference curves represents consumer preferences and the achievement of consumer equilibrium.

Analyze the decision-making process involving risk and reward, with applications to criminal behavior.

Discuss the factors influencing individual demand for goods and services.

Apply the utility-maximizing rule to explain consumption choices under budget constraints.

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Definitions:

Behaviorism

A branch of psychology that focuses on observable behaviors, emphasizing the role of environmental factors in shaping behavior.

John B.Watson

An influential American psychologist who is often considered a founder of behaviorism, focusing on observable behaviors rather than internal mental processes.

Population

A complete group of interest to researchers, from which a sample is drawn.

Sample

A subset of individuals or items selected from a larger population for the purpose of statistical analysis.