When Working for the Brooklyn District Attorney, Investigator Robert Burton

question 78

Essay

When working for the Brooklyn District Attorney, investigator Robert Burton analyzed the leading digits of the
amounts from 784 checks issued by seven suspect companies. The frequencies were found to be
0, 9, 0, 70, 485, 189, 8, 23, and 0, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9,
respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's
Law, the check amounts appear to result from fraud. Use a 0.05 significance level to test for goodness-of-fit
with Benford's Law. Does it appear that the checks are the result of fraud?

---

Definitions:

Propensity

A natural inclination or tendency towards a particular behavior or action.

Keeper

An individual responsible for the care or management of something, such as a property, animal, or institution.

Playfulness

An attitude or approach characterized by fun, lightheartedness, and a willingness to engage in playful activities.

Reasonable Person Standard

A legal standard used to determine whether an individual's actions were reasonable under particular circumstances, often used in negligence cases.