MisleadingCharts
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Five states fail the Benford screen, and chance alone fails two or three

Showing the misleading chart

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A data-integrity slide we drew from the Census Bureau’s county population estimates: five states’ county figures fail a Benford’s-law test at p < 0.05, and the slide recommends holding them out. It ran the test fifty times, once per state, and showed only the failures. By chance alone, fifty states whose digits truly follow Benford’s curve would fail about 2.5 times, and the counties pooled fit that curve with p = 0.66.

01The claim

Five states’ county population figures fail Benford’s law and should be held out until someone has checked them. A data-integrity slide of the kind an analyst might show before building on a public file, which we drew from real Census Bureau estimates: every state’s county populations go through a chi-square test of their first digits against Benford’s curve, and five fail at p < 0.05. Iowa is worst at p = 0.0017, with 47 of its 99 counties starting with a 1 where Benford’s law expects 30. Nevada has no county starting with a 3, Florida none starting with a 5. The recommendation is to exclude Iowa, Nevada, Colorado, Florida and Georgia from the model.

02The trick

Every figure on the slide is real and every p-value is right for its own state. What the slide leaves out is the number of tests: it ran the same test fifty times, once per state, and showed only the five that failed. At p < 0.05, fifty states whose digits truly follow Benford’s curve would still produce about 2.5 failures. We checked that directly: shuffling all 3,143 counties at random into fifty pretend states of the same sizes and screening again flags 2.3 states on average over 2,000 deals. Nine deals in ten flag at least one state, and 7.4% flag five or more. Benford’s name does the rest of the work. The law is famous as a fraud detector, so “fails Benford” reads as “looks made up”. The test only says the digits are unlikely if they follow Benford’s curve, and that assumption, that honest county populations follow it, is itself only roughly true. Small states make it look worse than it is. Nevada has 17 counties, so a single county moves a bar by six points, and a ragged histogram is what a small honest sample looks like. On that evidence the slide proposes dropping 406 counties from a model.

03The fix

Show all fifty. The redraw puts every state in one grid of small multiples on a common scale, ordered by p, the passes beside the failures. The five flagged states look much like Nebraska (p = 0.062) and Indiana (0.091), which passed. For context, the file as a whole looks like Benford: all 3,143 counties pooled give a chi-square of 5.9 on 8 degrees of freedom, p = 0.66, though a good pooled fit can’t clear any one state on its own. None of the five survives a correction for fifty tests. Bonferroni’s bar is 0.05/50 = 0.001, and Benjamini–Hochberg flags nothing either; with fifty tests, a smallest p as low as Iowa’s 0.0017 turns up about 8% of the time by chance. Iowa, the most extreme, also has a mundane cause on view, and it has nothing to do with tampering. 41 of its 99 counties hold between 10,000 and 19,999 people (median about 15,000). Benford’s law needs values spread evenly across orders of magnitude, so a cluster of similar-sized rural counties puts its first digits wherever the cluster sits, and Iowa’s sits on the 1s. A Benford screen across many groups is a way to choose where to look first. Say how many groups were screened, set the threshold for that count, show the passes with the failures, and check whether a group’s numbers are spread widely enough for Benford’s law to apply before reading a failure as anything more.