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Do I Even Need a Multilevel Model? Negligible Effect Significance Testing for Intraclass Correlation Coefficients

Abstract

In applied research, the decision to utilize multilevel modeling (MLM) is commonly guided by comparing a point estimate of the unconditional intraclass correlation coefficient (ICC) against some recommended threshold (e.g., 0.05). This naive approach, however, fails to account for sampling uncertainty and provides no formal inferential justification for a decision. The current work introduces negligible effect significance testing (NEST; or equivalence testing) for the ICC, proposing a framework that performs this test using a pivotal quantity of the ICC based on the F statistic. Furthermore, we offer guidance to help researchers define "negligible" that utilizes the design effect to characterize a tolerable level of variance inflation. R code illustrating the proposed procedure is provided.

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BibTeX
@misc{lee2026even,
  title = {{Do I Even Need a Multilevel Model? Negligible Effect Significance Testing for Intraclass Correlation Coefficients}},
  author = {Dayeon Lee and Gregory R. Hancock},
  howpublished = {arXiv},
  year = {2026},
  month = aug,
  doi = {10.48550/arxiv.2608.02535},
  eprint = {2608.02535},
  archivePrefix = {arXiv},
  url = {https://arxiv.org/abs/2608.02535},
}
RIS
TY  - UNPB
TI  - Do I Even Need a Multilevel Model? Negligible Effect Significance Testing for Intraclass Correlation Coefficients
AU  - Dayeon Lee
AU  - Gregory R. Hancock
PY  - 2026
DA  - 2026/08/03
PB  - arXiv
DO  - 10.48550/arxiv.2608.02535
UR  - https://arxiv.org/abs/2608.02535
AB  - In applied research, the decision to utilize multilevel modeling (MLM) is commonly guided by comparing a point estimate of the unconditional intraclass correlation coefficient (ICC) against some recommended threshold (e.g., 0.05). This naive approach, however, fails to account for sampling uncertainty and provides no formal inferential justification for a decision. The current work introduces negligible effect significance testing (NEST; or equivalence testing) for the ICC, proposing a framework that performs this test using a pivotal quantity of the ICC based on the F statistic. Furthermore, we offer guidance to help researchers define "negligible" that utilizes the design effect to characterize a tolerable level of variance inflation. R code illustrating the proposed procedure is provided.
ER  -