How Can We Calculate How Much of the Variation in Y

question 1

Multiple Choice

How can we calculate how much of the variation in Y is situated at each level?

• A) By dividing the log likelihood on the number of units in the respective levels
• B) By running your full model and then calculating the intraclass correlation coefficient
• C) By dividing the level-1 residual on each of the higher-level residuals
• D) By running an empty model and then calculating the intraclass correlation coefficient

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Definitions:

Overhead Costs

Expenses that are not directly tied to production activities, such as rent, utilities, and administrative expenses.

Batch-level Activities

Operations carried out on groups or batches of units rather than on individual units, often incurring costs that are common to the batch rather than to a single unit.

Batch-level Activity Cost

Costs associated with activities that are related to a batch of products rather than each individual unit, such as the cost of setting up machinery for each batch.

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on departmental activities and cost drivers.