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 those in financial records, population statistics, and scientific data. It is based on the observation that the first digit of such numbers follows a logarithmic distribution pattern, with smaller digits appearing more frequently than larger ones. This pattern can be used to detect potential fraud or anomalies in sets of data.