Non-independence due to groups is a common characteristic of applied data. In non-independent data, responses from members of the same group are more similar to each other than would be expected by chance. Non-independence is typically measured using the Intraclass Correlation Coefficient 1 or ICC(1). When non-independent data is treated as though it is independent, standard errors will be biased and power can decrease. This simulation allows one to estimate the bias and loss of statistical power that occurs when non-independent data is treated as though it is independent. The simulation contrasts a simple Ordinary Least Squares (OLS) model that fails to account for non-independence with a random coefficient model that accounts for non-independence. The simulation assumes that both the outcome (y) and the predictor (x) vary among individuals in the same group.

1 | ```
simbias(corr,gsize,ngrp,icc1x,icc1y,nrep)
``` |

`corr` |
The simulated true correlation between x and y. |

`gsize` |
The group size from which x and y are drawn. |

`ngrp` |
The number of groups. |

`icc1x` |
The simulated ICC(1) value for x. |

`icc1y` |
The simulated ICC(1) value for y. |

`nrep` |
The number of repetitions of simulated data sets. |

`icc1.x` |
Observed ICC(1) value for x in the simulation. |

`icc1.y` |
Observed ICC(1) value for y in the simulation. |

`lme.coef` |
Parameter estimate from the lme model. |

`lme.se` |
Standard error estimate from the lme model. |

`lme.tvalue` |
t-value from the lme model. |

`lm.coef` |
Parameter estimate from the linear model (OLS). |

`lm.se` |
Standard error estimate from the linear model (OLS). |

`lm.tvalue` |
t-value from the linear model (OLS). |

Paul Bliese paul.bliese@moore.sc.edu

Bliese, P. D. & Hanges, P. J. (2004). Being both too liberal and too conservative: The perils of treating grouped data as though they were independent. Organizational Research Methods, 7, 400-417.

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