Multi Level Models

Multi-level stock valuation

“datasets are often highly structured, containing clusters of non-independent observational units that are hierarchical in nature, and Linear Mixed Models allow us to explicitly model the non-independence in such data” (Harrison et al., 2018) [1] They allow modeling of data measured on different levels at the same time - for instance students nested within classes and schools - thus taking complex dependency structures into account (Burkner, 2018) [2]