Mathematical forensic tool to test the effect of Covid-19 outbreak: The case of the Dow Jones index

Forensics is among the countless applications of mathematics. With the development of modern computers, mathematical modelling and numerical simulation is new synergy in scientific discovery. A powerful mathematical forensic tool for detecting possible errors, fraud, bogus numbers, and even processi...

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Bibliographic Details
Main Authors: Sharif, Shar Nizam, Jaaman, Saiful Hafizah
Format: Conference Proceeding
Language:English
Subjects:
Applications of mathematics
Coronaviruses
COVID-19
Mathematical analysis
Mathematical models
Outbreaks
Pandemics
Viral diseases
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Summary:Forensics is among the countless applications of mathematics. With the development of modern computers, mathematical modelling and numerical simulation is new synergy in scientific discovery. A powerful mathematical forensic tool for detecting possible errors, fraud, bogus numbers, and even processing efficiencies is the Newcomb-Benford law, the law of anomalous numbers, also known as the first-digit law that states in many real-life sets of numerical data, the leading digit is likely to be small. In this study, the Two-Sided Power Benford’s Law is utilized to analyze the distribution of the Dow-Jones Index during the outbreak of the coronavirus COVID-19 from January 2020 to December 2020. The null hypothesis is that the distribution of Dow Jones stock market index follows Benford’s Law distribution. Results of this study concludes that the Dow Jones index distribution does not follow Benford’s Law throughout the COVID-19 pandemic outbreak. There exist data irregularities in daily close prices in DJIA throughout ongoing COVID-19 pandemic outbreak.
ISSN:0094-243X
1551-7616
DOI:10.1063/5.0171799