Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2022/iii/paper-218/4/c/solution

Conditionally on the school effect, the response variance is . Marginally,
and two distinct students in the same school have estimated covariance .
There is no single coefficient estimate for the random effect because the 28 school deviations are modeled as draws from a mean-zero distribution. The summary reports the estimated distributional variance; individual empirical Bayes predictions can be extracted separately.

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