While an [[experiment]] ensures, in [[Law of large numbers|expectation]], that potential outcomes (and all covariates) are equivalently distributed in the treatment and control groups, this is not the case in an [[observational study]]. In an observational study, units are not assigned to treatment and control randomly, so their assignment to treatment may depend on unobserved or unobservable factors. Observed factors can be statistically controlled (e.g., through [[regression analysis|regression]] or [[Matching (statistics)|matching]]), but any estimate of the ATE could be [[confounding|confounded]] by unobservable factors that influenced which units received the treatment versus the control. | While an [[experiment]] ensures, in [[Law of large numbers|expectation]], that potential outcomes (and all covariates) are equivalently distributed in the treatment and control groups, this is not the case in an [[observational study]]. In an observational study, units are not assigned to treatment and control randomly, so their assignment to treatment may depend on unobserved or unobservable factors. Observed factors can be statistically controlled (e.g., through [[regression analysis|regression]] or [[Matching (statistics)|matching]]), but any estimate of the ATE could be [[confounding|confounded]] by unobservable factors that influenced which units received the treatment versus the control. |