An investigator analyzed the leading digits from 787 checks issued by seven suspect companies. The frequencies were found to be 387, 201, 142, 70, 71, 28, 7, 16, and 23, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.01 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud?
Leading Digit: 1 2 3 4 5 6 7 8 9
Actual Frequency: 387 201 142 70 71 28 7 16 23
Benford's Law: 30.1% 17.6% 12.5% 9.7% 7.9% 6.7% 5.8% 5.1% 4.6%