The randomized response (RR) technique is often used to obtain answers on sensitive questions. A new method is developed to measure latent variables using the RR technique because direct questioning leads to biased results. Within the RR
Keywords: analysis of variance, item response theory model, Markov chain Monte Carlo (MCMC), random effects, randomized responseThe collection of data through surveys on highly personal and sensitive issues may lead to answering refusals and false responses, making inferences difficult. Obtaining valid and reliable information depends on the cooperation of the respondents, and the willingness of the respondents depends on the confidentiality of their responses. Warner (1965) developed a data collection procedure, the randomized response (RR) technique, that allows researchers to obtain sensitive information while guaranteeing privacy to respondents. For example, a randomizing device is used to select a question from a group of questions and the respondent answers the selected question. The respondent is protected because the interviewer will not know which question is being answered. Warner's and related approaches were specifically developed to hide answers of the respondents and to estimate proportions and related confidence intervals in the population.In some applications, randomized response data can be hierarchically structured, and there is an interest in group differences regarding some sensitive individual characteristic. One could think of an application where it is of interest to know if cheating behavior differs across faculties or if social security fraud is more likely to appear in groups with certain characteristics. However, the usual randomized response models do not allow a hierarchical data analysis of the RR data. Statistical methods for hierarchically structured data, for example analysis of variance (ANOVA) or multilevel analysis, cannot be applied because the true individual