Unaware of data analysis tools available,a sales person frequently processes lunch reimbursements without a receipt between $9.50 − $9.98,which is just below the amount requiring a receipt of $10.An analysis using which of the following would likely (and quickly)identify the salesperson's possible fraudulent behavior.
A) Leading digits hypothesis
B) Moore's law
C) Benford's law
D) Clustering

Question

Quizplus · Accepted Answer

Benford's law is a statistical observation that in many naturally occurring datasets, the first digit is more likely to be a smaller number. This law can be used to identify potential fraud in financial data, including expense reports. In this case, if the salesperson is consistently submitting reimbursement requests just below the receipt threshold, it may violate the expected distribution of first digits according to Benford's law, indicating potential fraud. The other options are not relevant for identifying this type of behavior.

Unaware of Data Analysis Tools Available,a Sales Person Frequently Processes