Mathematics, 13.12.2019 03:31 mrsroberts210
According to benford’s law the probability that the first digit of the amount of a randomly chosen invoice is a 1 or a 2 is 0.477. you examine 90 invoices from a vendor and find that 29 have first digits 1 or 2. if benford’s law holds, the count of 1s and 2s will have the binomial distribution with n = 90 and p = 0.477. too few 1s and 2s suggests fraud. what is the approximate probability of 29 or fewer if the invoices follow benford’s law? do you suspect that the invoice amounts are not genuine?
(a) 0.9855
(b) 0.0145
(c) 0.9984
(d) 0.0016
Answers: 3
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