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The purpose of this study was to examine the usage of multilevel measurement models (MLM) for estimating teacher evaluation ratings, compared to the traditional averaging method. Through a preliminary simulation, we show that MLMs produce larger mean estimates when a binary predictor (demographics information, gender for example) is included at the student level, compared to the averaging method. Contrarily, MLMs produce smaller mean estimates when a predictor is added at the teacher level. MLMs are also relatively robust to biases introduced at both levels. These simulation results will serve as a guide for the analysis of real data using these methods. Data collection will begin this coming fall.