On evaluation of sample size to test hypothesis on Benford’s distribution

digital

Article

Magazine

STATISTICA & APPLICAZIONI

Section

Open Access

Title

On evaluation of sample size to test hypothesis on Benford’s distribution

Author

Janusz L. Wywial

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

07-2021

Doi

10.26350/999999_000038

Issn

1824-6672 (print) | 2283-6659 (digital)

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Description Readers' comments

Benford’s distribution,also known as first-digit law, is used to detect several kinds of frauds on the basis of data. Several statistical tests are used to verify that real-life sources of data have Benford’s distribution. In this paper we consider in detail the well-known chi-square test and the Kolmogorov test of goodness of fit. The considerations are focused on determining the sample size that provides the assumed significance level as well as the power of the test. The necessary sample size is evaluated on the basis of simulation analysis under reasonable formulated alternative distributions to Benford’s distribution and under assumed significance levels and powers of the statistical tests.

keywords

Auditing, Chi-Square Test, Kolmogorov Test, Power, Fraud Detection.

Author biography

Department of Statistics, Econometrics and Mathematics - University of Economics in Katowice - street: 1 Maja 50, 40 - 287 KATOWICE, Poland
(e-mail: wywial@ue.katowice.pl).

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