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Chapter 11: Q11-4BSC (page 533)

Cybersecurity What do the results from the preceding exercises suggest about the possibility that the computer has been hacked? Is there any corrective action that should be taken?

Short Answer

Expert verified

Yes, there is a possibility that the computer has been hacked and there is a need for corrective action to be taken.

Step by step solution

01

Given information

The expected frequencies of the leading digits of inter-arrival traffic times are tabulated using Benford’s Law whereas the observed frequencies are obtained using a computer.

02

Necessary action

Referring to Exercise 3 of section 11-1,it has been concluded that the leading digits do not have a distribution that fits well with Benford’s law.

This means that the computer is not generating accurate results.

This implies that the computer might have been hacked.

If the computer has been jacked, corrective action is necessary to improve its performance in the future.

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Most popular questions from this chapter

In Exercises 5–20, conduct the hypothesis test and provide the test statistic and the P-value and , or critical value, and state the conclusion.

California Daily 4 Lottery The author recorded all digits selected in California’s Daily 4 Lottery for the 60 days preceding the time that this exercise was created. The frequencies of the digits from 0 through 9 are 21, 30, 31, 33, 19, 23, 21, 16, 24, and 22. Use a 0.05 significance level to test the claim of lottery officials that the digits are selected in a way that they are equally likely.

Probability Refer to the results from the 150 subjects in Cumulative Review Exercise 5.

a.Find the probability that if 1 of the 150 subjects is randomly selected, the result is a woman who spent the money.

b.Find the probability that if 1 of the 150 subjects is randomly selected, the result is a woman who spent the money or was given a single 100-yuan bill.

c.If two different women are randomly selected, find the probability that they both spent the money.

One Big Bill or Many Smaller Bills In a study of the “denomination effect,” 150 women in China were given either a single 100 yuan bill or a total of 100 yuan in smaller bills. The value of 100 yuan is about $15. The women were given the choice of spending the money on specific items or keeping the money. The results are summarized in the table below (based on “The Denomination Effect,” by Priya Raghubir and Joydeep Srivastava, Journal of Consumer Research, Vol. 36). Use a 0.05 significance level to test the claim that the form of the 100 yuan is independent of whether the money was spent. What does the result suggest about a denomination effect?

Spent the Money

Kept the Money

Women Given a Single 100-Yuan Bill

60

15

Women Given 100 Yuan in Smaller Bills

68

7

Police Calls The police department in Madison, Connecticut, released the following numbers of calls for the different days of the week during February that had 28 days: Monday (114); Tuesday (152); Wednesday (160); Thursday (164); Friday (179); Saturday (196); Sunday (130). Use a 0.01 significance level to test the claim that the different days of the week have the same frequencies of police calls. Is there anything notable about the observed frequencies?

Benford’s Law. According to Benford’s law, a variety of different data sets include numbers with leading (first) digits that follow the distribution shown in the table below. In Exercises 21–24, test for goodness-of-fit with the distribution described by Benford’s law.

Leading Digits

Benford's Law: Distributuon of leading digits

1

30.10%

2

17.60%

3

12.50%

4

9.70%

5

7.90%

6

6.70%

7

5.80%

8

5.10%

9

4.60%

Tax Cheating? Frequencies of leading digits from IRS tax files are 152, 89, 63, 48, 39, 40, 28, 25, and 27 (corresponding to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively, based on data from Mark Nigrini, who provides software for Benford data analysis). Using a 0.05 significance level, test for goodness-of-fit with Benford’s law. Does it appear that the tax entries are legitimate?
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