: Least Squares estimation and Empirical Bayes estimation. For a comprehensive discussion of these two methods and how they are implemented, we direct the reader to <strong>Loy and Hoffman (2014)</strong>.</p>
<p>LS and EB residuals each have their own advantages and disadvantages. Level-1 LS residuals are calculated by fitting separate linear models to each group and using LS to estimate the fixed and random effects. Because they rely only on the first level of the hierarchy, they are unconfounded with hig