Benford’s law

Admin
2011-10-12

Am I the only one who didn’t know about Benford’s law? It says that for many datasets, the probability that the first digit of a random element is d is given by P(d)= log_10 (1 + 1/d). This post by Jialan Wang explores financial report data and, using Benford’s law, notices that something fishy is going on… 

Hat tip to David Santiago.

Update: A link has been fixed.