I tried this on some of my claims data and the first digit seems legit, but not as smooth as I would like it. I am planning to try the first 2 digits, but not sure how to calculate the probabilities. Anyone knows the formula to calculate the probabilities for the first 2 digits? The attached article only gave the formula for calculating the probabilities of the first digit. Thanks.
Thanks for helping. I found it here, for those who are interested and have not much time to hunt around. Here is the original page.