Data collection procedures in the behavioral sciences do not always follow
the rules of simple random sampling, an assumption of ordinary least square
s regression. This is the case in cluster sampling designs which contain mo
re than one type of experimental unit, such as subjects that are nested wit
hin classes, schools or companies. Failure of taking into consideration the
special structure of the data results in estimation bias for the standard
error and in an increase in the probability of inference errors. Multilevel
analysis models this relationship among the observations while providing u
nbiased standard error and estimates of the contextual variability of regre
ssion coefficients. The purpose of this paper is to simplify multilevel ana
lysis as a generalization of the analysis of covariance on the basis of com
monly used statistical concepts such as repeated measures designs, fixed an
d random effects models. Several application examples in school psychology
are reviewed.