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Benford's Law - anyone have their own examples?

by 6.28318531
Tags: benford, examples
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6.28318531
#1
Dec15-11, 01:07 AM
P: 55
http://en.wikipedia.org/wiki/Benford's_law

Anyone here have their own examples? I found it applies to the tonnage of steel beam produced where I am working.30% of the time the weight started with a one.
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jsgruszynski
#2
Jan4-12, 08:59 AM
P: 287
It's important to understand why Benford's works (because there are many causes where false positives and false negatives can occur). Basically you have to have a random process generating the numbers.

A simply accounting example that doesn't pass Benford yet is perfectly legitimate is an ensemble of cash flows resulting from a fixed contractual amount. It's also quite easy to fake a Benford distribution.


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