Questions 1. Frank Benford's data included all the numbers in an issue of a. Fibonacci Quarterly b. Physics Weekly c. PC Magazine d. Reader's Digest 2. Frank Benford analyzed the of 20 lists of numbers with 20,229 observations. a. decimal places b. first digits c. logarithms d. expected frequencies 3. In Table 3.1 the expected frequencies are displayed as proportions. The proportions in each of the four rightmost columns add up to a. 1.0 b. 4.0 c. 10.0 d. different values 4. Benford concluded that nature counts eº, ex, e2x, e³x, and so on, and builds and functions accordingly. The numeric value of the "e" that is being referred to is a. 0.30103 b. 2.718 с. 3.141 d. V-1 5. A geometric sequence is a sequence of numbers in which each successive number is the previous number a. plus a constant b. plus V-1 c. multiplied by zero d. multiplied by a common ratio 6. If all the numbers in a dataset that conformed to Benford were multiplied by a (nonzero) constant, then the new dataset a. will also conform to Benford b. will not conform to Benford C will sum to 10000 d. will follow the rules of linear algebra 7. Table 3.2 shows the total revenues of Enron for 1997 to 2000 (both years inclusive). Of these revenue numbers have a second digit 0. a. zero b. one c. two d. three e. four 8. The underlying premise of the Benford literature is that authentic data should follow Benford and that deviations from Benford could signal a. incomplete data b. that the data is a sample and not the population c. a qualified audit opinion d. irregularities of some sort 9. Generally speaking, when expecting conformity to Benford, the data should not have a built-in minimum or maximum value. However, a built-in minimum of is usually acceptable. a. V-1 b. zero c. π radians d. a geometric sequence 10. In the first-two digit graphs in Figure 3.4 the x-axis shows the first-two digits which range from 10 to 99. The number of first-two digit combinations (the number of bars in each of the graphs) equals a. 89 b. 90 c. 99 d. 100
