1 Reply Latest reply on Jun 18, 2012 1:54 PM by Alex Kerin

    Benford's rule / First Digit Rule

    Erik Teutsch

      Hi All,


      Reposting from an internal discussion because I thought this would be useful to the community:


      Benford's Rule, also called the first-digit law, states that in lists of numbers from many real-life sources of data, the leading digit is distributed in a specific, non-uniform way.  Refer to  http://en.wikipedia.org/wiki/Benfords_law for more information.  The blue and beige banding represents +/- 20% of the Benford's Rule ideal.  Notice ony a few of the first two digits of all of the journal entries are dramatically outside the banding.  These may be entries that require additional investigation.


      Workbook attached