The Essential Difference Between an Experiment and an Observational Study

question 14

Multiple Choice

The essential difference between an experiment and an observational study is that

• A) observational studies always involve large numbers of subjects, but experiments never do.
• B) in an experiment, information is gathered only on animals or things, but in an observational study, only information about people is gathered.
• C) an observational study imposes treatments on the subjects, but an experiment does not.
• D) observational studies cannot have variables.
• E) an experiment imposes treatments on the subjects, but an observational study does not.

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Definitions:

Long-Term Debt

Financial obligations of a borrowing entity that are due for repayment in more than one year's time.

Fixed Stream of Income

Income generated from investments that provide a constant amount of money at regular intervals.

Hang Seng

Refers to the Hang Seng Index, a stock market index in Hong Kong representing the performance of the largest companies listed on the Hong Kong Stock Exchange.

Stock Markets

Platforms where shares of publicly-held companies are bought and sold, contributing to the allocation of capital in an economy.