Unal Benford s Law claims that numbers chosen from very large data files tend to have 1 as the first nonzero digit

Question

Unal Benford s Law claims that numbers chosen from very large data files tend to have 1 as the first nonzero digit disproportionately often In fact research has shown that if you randomly draw a number from a very large data file the prob of getting a number with 1 as the leading digit is about 0 301 Now suppose you are the auditor for a very large corporation The revenue file contains millions of numbers in a large computer data bank You draw a random sample of n 229 numb from this file and r 88 have a first nonzero digit of 1 Let p represent the population proportion of all numbers in the computer file that have a leading digit of 1 1 Test the claim that p is more than 0 301 Use a 0 10 a What is the level of significance 0 10 State the null and alternate hypotheses Ho P 0 301 H p 0 301 O Ho P 0 301 H p 0 301 Ho p 0 301 H p 0 301 O Ho P 0 301 H p 0 301 b What sampling distribution will you use The standard normal since np 5 and nq 5 O The Student s t since np 5 and nq 5 The Student s t since np 5 and nq 5 The standard normal since np 5 and ng 5 What is the value of the sample test statistic Round your answer to two decimal places 2 76 c Find the P value of the test statistic Round your answer to four decimal places 0 0056

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