Paper details
An investigator analyzed the leading digits of the amounts from 200 checks issued by three suspect companies.
The frequencies were found to be 68, 40, 18, 19, 8, 20, 6, 9, 12 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 be the result of fraud. Use a 0.05
significance leveÕÉ≠†Њ†l to test for goodness­of­fit with Benford’s law.
1. Calculate the χ2 test statistic.