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Oct 20, 2011 at 20:07 comment added King Simple regression is like treating each record as independent. In that case, the sample size would be exaggerated since the records within the same state are possibly correlated. A multilevel model introduce a random random effect that allows each state to be different. It is also known by a couple of different names though, random/varying intercept model; mixed effects model. Hope this helps.
Oct 20, 2011 at 19:25 comment added dassouki I was wondering if you could explain further your first statement about the simple regression and the usage of multilevel models
Oct 20, 2011 at 19:19 history answered King CC BY-SA 3.0