Thanks for the quick response, and the simulation! Once the model is developed I intended to use PLM to make predictions under multiple scenarios where the term A is varied and then assess the difference in the exceedence frequency for each scenario using a cutpoint value. So for instance, if the cutpoint for identifying an exceedence is 0.50, then for row 239 the BLUP value is greater than 0.50 while the NOBLUP value is less than 0.50. In my case this makes a fairly substantial difference but now I am thinking that this means I should probably specify D as a fixed effect even though the overall objective is to evaluate the effects of A.
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