Benford's law:
A)applies to numbers that have built-in limits.
B)is most effectively used with assigned numbers.
C)applies best to numbers that occur naturally.
D)uses ratios to detect fraud.

Question

Quizplus · Accepted Answer

Benford's law applies best to numbers that occur naturally, such as populations, income, or sales figures. It is based on the observation that in many data sets, the first digit of a number is more likely to be 1 than 9, and the frequency distribution of first digits follows a logarithmic pattern. This pattern can be used to detect anomalies or fraud in data sets, but it is not limited to assigned or limited numbers, and it does not rely on ratios exclusively.

Benford's Law