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Many [[process (engineering)|processes]] have more than one source of [[statistical dispersion|variation]] in them. In order to [[variance reduction|reduce variation]] in processes, these multiple sources must be understood, and that often leads to the concept of nested or hierarchical data structures. For example, in the semiconductor industry, a [[batch production|batch process]] may operate on several [[wafer (electronics)|wafers]] at a time (wafers are said to be '''nested''' within batch). Understanding the input variables that control variation among those wafers, as well as understanding the variation across each wafer in a run, is an important part of the strategy for minimizing the total variation in the system.
==Example of nested data==
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