Benford's Law Explained: Insights for Quants and Developers in Predictive Analytics

di Elizabeth Mogopodi (Autore)

Elizabeth Mogopodi, 2025

Discover the hidden order in datasets with Benford's Law. This phenomenon reveals that digit 1 appears 30% of the time, while 9 trails at 6%. Experts leverage this to detect anomalies in finance, physics, and AI. "Benford's Law Explained" provides the depth needed to apply this phenomenon in real-world scenarios. Battle-Tested Applications - Financial Forensics: Identify cooked books, detect anomalies in ledger entries, expense reports, and stock volumes. Implement SEC-compliant workflows. - AI/ML Safeguards: Validate synthetic data generators, GAN outputs, and audit training datasets for biases or manipulation. - IoT & Sensor Analytics: Identify malfunctioning sensors, filter noise from industrial telemetry streams, and detect anomalies. - Compliance & Auditing: Automate Benford screens for anti-money laundering (AML) and procurement fraud. Quantify "reasonable suspicion" for regulatory evidence. Technical Deep Dives - Code Libraries: Python (with benford_py/custom Pandas), R (benford.analysis), SQL (window functions), and Scala/Spark for petabyte-scale data. - Advanced Metrics: Kullback-Leibler divergence, Mantissa arc tests, and sequential analysis. - Edge Cases Demystified: When to avoid Benford (assigned IDs, bounded ranges). - Scalability Tactics: Approximate algorithms for streaming data and distributed systems. Real-World Case Studies - Quant Fund: Detecting spoofed trades in limit order books. - E-Comm Platform: Uncovering fake reviews via rating distributions. - Health Tech: Validating clinical trial data integrity. For Whom? - Quants & Traders: Screening market data for manipulation. - Data Engineers: Building validation layers in ETL pipelines. - MLOps/Data Scientists: Stress-testing model inputs/outputs. - Auditors & Risk Officers: Automating forensic workflows. - Academic Researchers: Statistical foundations and extensions. This book provides a comprehensive guide to applying Benford's Law in real-world scenarios, with code-ready insights and technical deep dives.

• Autore: Elizabeth Mogopodi
• Anno edizione: 2025
• Editore: Elizabeth Mogopodi
• Formato: EPUB2 con DRMFREE
• Lingua: Inglese
• Compatibilità: Tutti i dispositivi (eccetto Kindle)
• Layout: Reflowable
• EAN: 9798232937065