The General Principle of Benford's Law Is That

question 48

Multiple Choice

The general principle of Benford's Law is that:

• A) If fraud exists, the difference between horizontal analysis figures will be divisible by 9.
• B) Ratios will be increased or decreased by one digit if fraud exists.
• C) The likelihood that numbers 1, 2, 3, 4, 5, 6, 7, 8, and 9 will appear as the first digit in numbers occurring in a random data set conforms to a predictable pattern.
• D) The likelihood that numbers 2, 4, 6, 8 and 10 will appear as the first digit in numbers occurring in a random data sets conforms to a predictable pattern.

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Definitions:

Promotion

The act of advancing someone to a higher position or rank, often associated with increased responsibilities and benefits.

Salary

Fixed regular payment, typically on a monthly or biweekly basis, made by an employer to an employee, especially professional or white-collar workers.

Relative Deprivation

The feeling of dissatisfaction or injustice from perceiving oneself as worse off compared to others.

Satisfaction

A feeling of pleasure or fulfillment resulting from achieving a desire or need.