Economics and Finance


Conditional Probability of Actually Detecting a Financial Fraud a Neutrosophic Extension to Benford's Law

Authors: Sukanto Bhattacharya, Kuldeep Kumar, Florentin Smarandache

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.

Comments: 9 pages.

Download: PDF

Submission history

[v1] 8 Mar 2010
[v2] 19 Apr 2010

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