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Suppose we analyze as level 1 variable ”tooth health status”.

”Tooth health status” is an aggregation of several tooth characteristics (this variable follows a normal distribution, it has a mean and standard deviation).

There is a structure in this data, a hierarchy. We have TEETH as level 1 and MOUTHS as level 2.

We also create “arbitrarily defined mouths” (red circles). These mouths are only a mix of teeth without any natural or anatomical criterion.