where the xij are covariates or design variables specifying which treatment condition is associated with each RNA sample, and the αgj are unknown regression coefficients representing expression log-fold changes (logFCs) between conditions in the experiment.
Each gene is assumed to have its own variance, . Expression values from different arrays are assumed to be independent, but expression values for different genes from the same RNA sample are generally not. The correlations cor(ygi,yg′i) = ρg,g′ are generally non-zero. Note that the ρg,g′ here represent residual correlations between genes across replicate samples, after the treatment effects μgi have been removed.