Dishonest people try to fake numbers in tax returns invoices or expense account laims It s actually hard to make up numbers that

Question

Dishonest people try to fake numbers in tax returns invoices or expense account laims It s actually hard to make up numbers that are fully realistic One reason is that the first digits of numbers in legitimate records often follow a model known as Benford s Law Call the first digit of a randomly chosen record X for short Benford s Law gives this probability model for X First digit 1 2 3 4 5 6 7 8 9 X probability 0 301 0 176 0 125 0 097 0 079 0 067 0 058 0 051 0 046 For instance if ABC company has been keeping legitimate records of its accounts the probability that a randomly chosen record starts with the number 7 is 0 058 A company without this probability has been jiggering its records somehow Reference Benford s law If Tembo Safaris keeps legitimate records what percent of those records will start with the digits 5 6 or 7

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