Conditional probability of actually detecting a financial fraud - a neutrosophic extension to Benford's law

Sukanto Bhattacharya; Kuldeep Kumar; Florentin Smarandache

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Conditional probability of actually detecting a financial fraud - a neutrosophic extension to Benford's law

Sukanto Bhattacharya·Kuldeep Kumar·Florentin Smarandache

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Abstract

This study actually draws from and builds on an earlier paper (Kumar and Bhattacharya, 2002). Here we have basically added a neutrosophic dimension to the problem of determining the conditional probability that a financial fraud has been actually committed, given that no Type I error occurred while rejecting the null hypothesis H0: The observed first-digit frequencies approximate a Benford distribution; and accepting the alternative hypothesis H1: The observed first-digit frequencies do not approximate a Benford distribution. We have also suggested a conceptual model to implement such a neutrosophic fraud detection system.

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Sukanto Bhattacharya, Kuldeep Kumar, Florentin Smarandache. 2005-04-25. Conditional probability of actually detecting a financial fraud - a neutrosophic extension to Benford's law. https://arxiv.org/abs/math/0504520

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