Z-Statistic
Definition
A per-digit test that calculates whether the deviation between an observed frequency and the Benford expected frequency for that single digit is statistically significant, allowing the analyst to pinpoint which digits are anomalous.
Related terms
- Benford's Law
- An empirical regularity in naturally occurring numerical datasets: the leading digit follows a logarithmic distribution, with 1 appearing about 30% of the...
- Chi-Square Test
- A goodness-of-fit test comparing the observed digit frequencies in a dataset to the expected Benford frequencies, producing a test statistic that is...
- Mean Absolute Deviation (MAD)
- A practical Benford conformity measure that averages the absolute differences between observed and expected proportions across all leading digits, with Nigrini benchmarks...
- Second-Digit Test
- Analysis of the second significant digit in isolation, where 0 is expected to appear about 11.97% of the time. A spike in...
- Two-Digit Test
- An extension of Benford's Law to the first two significant digits, producing 90 possible combinations each with a predicted frequency, which is...
Explained in
- Benford's Law and Digital AnalysisA per-digit test that calculates whether the deviation between an observed frequency and the Benford expected frequency for that single digit is statistically...