A Statistical Derivation of the Significant-Digit LawStatistical Science
AbstractThe history, empirical evidence and classical explanations of the significant-digit (or Benford's) law are reviewed, followed by a summary of recent invariant-measure characterizations. Then a new statistical derivation of the law in the form of a CLT-like theorem for significant digits is presented. If distributions are selected at random (in any "unbiased" way) and random samples are then taken from each of these distributions, the significant digits of the combines sample will converge to the logarithmic (Benford) distribution. This helps explain and predict the appearance of the significant0digit phenomenon in many different empirical contexts and helps justify its recent application to computer design, mathematical modeling and detection of fraud in accounting data.
Citation InformationTheodore P. Hill. "A Statistical Derivation of the Significant-Digit Law" Statistical Science Vol. 10 Iss. 4 (1995) p. 354 - 363
Available at: http://works.bepress.com/tphill/43/