Benford's law, also called the Newcomb–Benford law, the law of anomalous numbers, or the first-digit law, is an observation about the frequency distribution of leading digits in many real-life sets of numerical data. The law states that in many naturally occurring collections of numbers, the leading digit is likely to be small.[1] For example, in sets that obey the law, the number 1 appears as the leading significant digit about 30% of the time, while 9 appears as the leading significant digit less than 5% of the time. If the digits were distributed uniformly, they would each occur about 11.1% of the time.[2] Benford's law also makes predictions about the distribution of second digits, third digits, digit combinations, and so on.
It has been shown that this result applies to a wide variety of data sets, including electricity bills, street addresses, stock prices, house prices, population numbers, death rates, lengths of rivers, and physical and mathematical constants.[5] Like other general principles about natural data—for example the fact that many data sets are well approximated by a normal distribution—there are illustrative examples and explanations that cover many of the cases where Benford's law applies, though there are many other cases where Benford's law applies that resist a simple explanation.[6] It tends to be most accurate when values are distributed across multiple orders of magnitude, especially if the process generating the numbers is described by a power law (which are common in nature).
The law is named after physicist Frank Benford, who stated it in 1938 in a paper titled "The Law of Anomalous Numbers",[7] although it had been previously stated by Simon Newcomb in 1881.[8][9]
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