When Working for the Brooklyn District Attorney, Investigator Robert Burton

question 59

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, 18, 0, 79, 476, 180, 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?

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Definitions:

D-Day

The Allied invasion of Normandy, France, on June 6, 1944, during World War II, marking a pivotal phase in the liberation of Western Europe from Nazi control.

Undemocratic Leaders

Individuals who lead their countries or organizations without adhering to the principles and practices of democracy, often through authoritarian, dictatorial, or oppressive measures.

President Roosevelt

Refers to either Theodore Roosevelt, who served as the President of the United States from 1901 to 1909, or Franklin D. Roosevelt, who served from 1933 to 1945.

Organized Labor

Refers to the collective organization of workers through unions and labor groups to advocate for better working conditions, wages, and rights.