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What is Benford's Law?

The Law Explained

Benford's Law states that in many naturally occurring datasets, the leading digit is more likely to be small (1 appears ~30% of the time, 9 appears ~5% of the time).

Fraud Detection

Widely used in forensic accounting to detect anomalies in financial data, tax returns, and election results.

Data Validation

Helps verify the authenticity of datasets in scientific research, population statistics, and economic data.

Limitations

Doesn't prove fraud - only indicates anomalies. Works best with large datasets spanning multiple orders of magnitude.

Mathematical Formula

Probability of digit d as first digit: P(d) = log₁₀(1 + 1/d) where d ∈ {1, 2, ..., 9}

Historical Use

First observed by Simon Newcomb in 1881, later popularized by Frank Benford in 1938. Used by IRS and auditors worldwide.