The company's gross profit plays an important role in boosting the Gross Regional Domestic Product (PDRB) which will affect the revenue of local governments, known as Pendapatan Asli Daerah. Local governments often need information how gross profits of companies are different within each sector. It is not easy to investigate this matter especially if these companies are observed repeatedly and subsectors are nested within the sector. In this study, three factors were involved, i.e., sectors, subsectors which are nested in a particular sector, and time. It is assumed that the sectors and time of observation are fixed, whereas the subsectors are random. The response variable is the average gross profit per subsector of public companies in West Java. The objective of this study is to identify the variation of the subsectors, the effects of sectors as well as time on the average of the gross profit. Since the study involves fixed and random factors and the gross profit rate was observed more than one time, then a nested mixed model with repeated measurement is used. The results showed that there was no sector effect on the average gross profit, there is a variation in the average gross profit per subsector that is nested within the sector, and the time of observation did not influence the average gross profit.
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