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Multi-level qualitative (fixed-effects) factors

Dear List,

For the analysis of my GLMM i am using AIC values rather than stepwise regression to simplify it. I have developed some candidate models and am running through them now. I know a priori that  there are some important interactions and i  have also removed all the factors i consider unimportant.

I have many multi level factors i.e habit - aquatic, terrestrial, epiphyte etc

I ran the model with habit as a factor
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Which had a AIC of 1406

I then re-ran the model with only aquatic and got a lower AIC value - which i guess is to be expected as aquatic is highly significant and aquatic species are more prone to threat ( my response).
My question is  - when i developed the candidate models i thought using multilevel factors would be OK and i would be able to tease out the individual levels. If i split the factors into levels from the beginning then i am left with a huge amount of candidate models? This would not be a problem in stepwise regression as i could just remove the habit with the least significant P Value.

If i remove habits i "feel" are unimportant from the beginning i feel i would be limiting the model too much.

I hope this makes sense!

Has anyone else had this problem or can see a work around?

Thanks

Peter