Question: Benford's law, also called the first-digit law, states that in lists of numbers from many (but not all) real-life sources of data, the leading digit is distributed in a specific, non-uniform way shown in the following table.

The owner of a small business would like to audit its account payable over the past year because of a suspicion of fraudulent activities. He suspects that one of his managers is issuing checks to non-existing vendors in order to pocket the money. There have been 790 checks written out to vendors by this manager. The leading digits of these checks are listed as follow:

What is the critical value for this test at the 5% significance level (95% confidence level)? Do the data provide sufficient evidence to conclude that there is fraud committed?