ExpertEasy1 markMultiple Choice
CPA · Question 43 · Area 4: Data Analytics
When using Benford's Law for fraud detection, which digit is expected to appear most frequently as the leading digit in a natural dataset?
When using Benford's Law for fraud detection, which digit is expected to appear most frequently as the leading digit in a natural dataset?
Answer options:
A.
1
B.
5
C.
9
D.
All digits have equal probability (11.1%).
How to approach this question
Memorize Benford's curve: 1 is high (30%), 9 is low (4.6%).
Full Answer
A.1✓ Correct
Benford's Law states that in many naturally occurring collections of numbers, the leading significant digit is likely to be small. 1 appears ~30.1% of the time.
Common mistakes
Assuming a uniform distribution (random chance).
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