Over the past 25 years sophisticated data analytic techniques have been developed which can lead to improved analyses, but at additional computational cost. In particular, this applies to the approach where interindividual random effects are included in a data analytic model for population pharmacokinetic data, which can often lead to substantially improved estimates of fixed-effect parameters. However, there are also commonly occurring situations, notably with some types of pharmacodynamic data, where such improvement is not realized. This study simulates some simple population dichotomous data, and secondarily, some related continuous data. These data are analyzed using both mixed-effect (ME) models that include interindividual random effects and naive (NA) models that do not include interindividual random effects, and it is seen that use of an ME model does not inevitably lead to gains over use of an NA model. In fact, using maximum likelihood estimation with both types of models, the root mean square estimation errors for fixed effect parameters can actually be larger with an ME model than with the corresponding NA model. Using a form of restricted maximum likelihood estimation with the ME model, the two types of models yield root mean square errors which are comparable, but which still do not suggest that there is always marked advantage in using the ME model.