Variance Estimates

This table displays variance estimates for each of the variance components. You can use this table to figure out how much each component contributes to the total variance. In this example Var(STOREID)=665.237 and Var(Error)=3835.388. Thus, the store effect explains 665.237/(665.237+3835.388) = 14.78% of the random variation. Error accounts for the 85.22% of the random variation. While the store effect accounts for a good bit of the random variation in the amount spent by customers, most of the variation is due to chance error.

Next