Summary
In many ways, Benford's Law seems like the perfect test for fraud and other misdeeds. It's intriguing, simple, and computationally cheap. However, as we've seen, it's not always reliable; Χ2 tests can be finicky, and as evidence, it doesn't stand on its own. It really needs to be buttressed by other data and helps to support cases of fraud.
However, it is a piece of evidence. It provides a distribution that is difficult to mimic, and it describes a wide class of number sequences accurately. In combination with other information and evidences, it can provide support in the cases of misdeed.
We've also learned about Χ2 tests, a very useful statistical procedure. Although they are sensitive to the sample size, these tests still have a lot to offer and are highly recommended. They're cheap to perform., and they work well with the categorical data or data that counts a limited, fixed number possibilities, such as sex or color. When used with appropriate sample sizes, they're straightforward...
