Explain mixed models and fixed vs random effects

Q: Explain mixed models and fixed vs random effects

This question evaluates understanding of mixed effects models, the conceptual distinction between fixed and random effects, interpretation of coefficients and variance components, and awareness of practical pitfalls when modeling hierarchical or panel data.

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Question

In an applied DS setting, you are modeling an outcome (e.g., watch time per session, conversion, or rating) across multiple entities (e.g., users, creators, regions, experiments).

What is a mixed effects model ?
Explain the difference between fixed effects and random effects .
Give an example where a mixed model is preferable to a standard regression.
How do you interpret coefficients/variance components?
What practical pitfalls would you watch for (identifiability, shrinkage, correlated random effects, unbalanced panels)?

Explain mixed models and fixed vs random effects

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Explain mixed models and fixed vs random effects

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