webassign.net/web/Student/Assignment-Responses/submit?dep=33426106\&tags=autosave\#question3878798_16 Recall that 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 probability 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 \( n=220 \) numbers from this file and \( r=85 \) 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. (i) Test the claim that \( p \) is more than 0.301 . Use \( \alpha=0.10 \). USE SALT (a) What is the level of significance? 0.10 State the null and alternate hypotheses. \( H_{0}: p=0.301 ; H_{1}: p \neq 0.301 \) \( H_{0}: p=0.301 ; H_{1}: p>0.301 \) \( H_{0}: p>0.301 ; H_{1}: p=0.301 \) \( H_{0}: p=0.301 ; H_{1}: p<0.301 \) (b) What sampling distribution will you use? The standard normal, since \( n p>5 \) and \( n q>5 \). The Student's \( t \), since \( n p<5 \) and \( n q<5 \).
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The level of significance, denoted as \( \alpha \), is given in the problem as 0.10. This value is used to determine the critical value and the rejection region for the hypothesis test. Show more…
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Madhur L.
Recall that 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 probability of getting a number with "1" as the leading digit is about 0.304. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 224 numerical entries from the file and r = 51 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. Test the claim that p is less than 0.304. Use alpha = 0.10. (a) What is the level of significance? State the null hypothesis H0 and the alternate hypothesis H1. H0: p = 0.304 H1: p < 0.304 (b) What sampling distribution will you use? The standard normal or the Student's t? since np and nq ... What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find the P-value of the test statistic. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value.
Robin C.
Recall that 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 probability 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 = 230 numbers 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. Test the claim that p is more than 0.301. Use α = 0.10. (a) What is the level of significance? State the null hypothesis H0 and the alternate hypothesis H1. H0: p ---Select--- H1: p ---Select--- (b) What sampling distribution will you use? The standard normal The Student's t since np ---Select--- ---Select--- and nq ---Select--- ---Select--- What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find the P-value of the test statistic. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α? At the α = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant. At the α = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant. At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant. At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) Interpret your conclusion in the context of the application. There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is greater than 0.301. There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is greater than 0.301.
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