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In addition
to plotting predicted values for individual level-2 units
using level-1 equations, users can also examine the distributions
of the level-1 errors or residuals (see Equation 3.63 on p.
50 in Hierarchical Linear Models). The plots allow
users to graphically examine the assumptions about the level-1
residuals and to identify cases for which the model provides
a particularly poor fit. We continue to use vocab.mdm to
illustrate this graphing procedure.
After the model is run, select
Graph Equations...Level-1 box whisker from the File
menu, which will give us the following dialog box.
Note that
the variable for Y-axis, level-1 residual has been pre-selected.
Select All groups (n=22)
in the Number of groups field to include all the 22
children in the display. Click the selection button for median
in the Sort by section to arrange the plots by median
order. Click OK. The following graph will appear.

The box-and-whisker
plots provide side-by-side graphical summaries of the level-1
residuals for each level-2 units. The plots suggests
that the underlying model assumptions may not be tenable.
First, quite a number of the distributions are highly asymmetric,
such as the last one from the left. Thus, the normality assumption
may not hold. There seems to be heterogeneity of variance
as well, judging from the wide disparities in the box lengths.
The non-constant residual spread may suggest an omission of
important effects from the model. However, there are no extreme
values or outliers in any of the 22 plots.
Users can (optionally) look
at the EB estimates for any child by clicking on the corresponding
box-and-whisker plot. A level-2 classification variable can
also be included when examining the level-1 residuals.

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