Evaluation of Reliability Coefficients for Two-Level Models via Latent Variable Analysis

A latent variable analysis procedure for evaluation of reliability coefficients for 2-level models is outlined. The method provides point and interval estimates of group means' reliability, overall reliability of means, and conditional reliability. In addition, the approach can be used to test simple hypotheses about these parameters. The procedure is applicable with unconditional models as well as with conditional models including higher level explanatory variables. The proposed method is illustrated with an empirical example.