I read that I can use the hypothesis testing technique for proportions to decide whether the number of levels for a design variable could be reduced. In literature the following typical test was used:(adsbygoogle = window.adsbygoogle || []).push({});

Ho: pi=0

Ha: pi [itex]\neq[/itex]0 where pi is the proportion of class i (level i ) within the

designated design variable.

For my example I have a set of values 546,464,321,112,123 each representing one level.

Can you please explain how to use the test because I am not clear on that and how to decide about confidence levels

PLease help

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# Hypothesis testing technique

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