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Benford's Law in accounting fraud detection
History of Farenheit and Celsius temperature scales
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An auditor asked me once during lunch if statistics can be used to detect fraud in accounting practice?
As a matter of fact it can be! There is Benford distribution of first digit in financial numbers that suggests that 30% of all accounting numbers start with "1", about 18% start with "2" and so on.
This rule applies to corporate expense amount, sales, cheque amounts, many other financial data. Using simple statistical techniques (like goodness-of-fit Chi-square test) you can verify if certain financial values do follow Benford distribution. If they don't, it's a red flag.
If you would like to know more, please check
Wikipedia page
as well as
this article by Mark Nigrini.
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Temperature is a widely used concept in the world, with Celsius and Fahrenheit being two popular scales.
Anders Celsius and Daniel Gabriel Fahrenheit both lived in 18th century and developed their scales independently of each other.
Celsius used fresh water with two anchor points originally: 0 = boiling point and 100 = freezing point. Later it was reversed to what we currently know as Celsius temperature (0C being freezing point of fresh water and 100C is boiling temperature).
Fahrenheit established his scale using three achor points: 0 = freezing point of salt water, 32 = freezing point of fresh water, 96 = human body temperature. It's not clear why 0/32/96 were choosen, one theory suggests that scientists love fractions (and 96 can be divided into more numbers than 100).
Later on it was discovered that 96 is not the correct measurement for human body temperature, it's actually 98.6 degree, thus the scale was re-calibrated and it's what we have today.
Some interesting facts about temperature scales can be found
here.
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Available any time on weekdays, evening and weekends.
Downtown Toronto, anywhere in GTA, or online.
 
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