ABSTRACT
Multilevel semicontinuous data occur frequently in medical, environmental, insurance and financial studies. Such data are often measured with covariates at different levels; however, these data have traditionally been modelled with covariate-independent random effects. Ignoring dependence of cluster-specific random effects and cluster-specific covariates in these traditional approaches may lead to ecological fallacy and result in misleading results. In this paper, we propose Tweedie compound Poisson model with covariate-dependent random effects to analyze multilevel semicontinuous data where covariates at different levels are incorporated at relevant levels. The estimation of our models has been developed based on the orthodox best linear unbiased predictor of random effect. Explicit expressions of random effects predictors facilitate computation and interpretation of our models. Our approach is illustrated through the analysis of the basic symptoms inventory study data where 409 adolescents from 269 families were observed at varying number of times from 1 to 17 times. The performance of the proposed methodology was also examined through the simulation studies.
