Experiment Structure
Design
→Randomize
→Control
→Validate
In This Article
Introduction
A well-designed experiment allows you to establish causation—not just correlation. However, experimental errors can lead to incorrect conclusions. Understanding how to control for these errors is essential for valid business experimentation.
Types of Experimental Errors
Systematic Errors (Bias)
Consistent errors that skew results in one direction.
- Selection bias: Groups differ systematically before treatment
- Measurement bias: Measuring tool consistently over/under reports
- Observer bias: Experimenter influences results
- Attrition bias: Different dropout rates between groups
Random Errors
Unpredictable fluctuations that increase variance but don't skew results systematically.
- Natural variation in subjects
- Measurement noise
- Environmental fluctuations
Validity Concepts
| Type | Question | Threats |
|---|---|---|
| Internal Validity | Did treatment cause the effect? | Confounders, selection bias, history |
| External Validity | Can results generalize? | Sample not representative, artificial setting |
| Construct Validity | Are we measuring what we think? | Poor operationalization |
| Statistical Validity | Are conclusions statistically sound? | Low power, multiple testing |
Common Threats to Internal Validity
- History: External events during experiment
- Maturation: Natural changes over time
- Testing: Taking a test affects subsequent scores
- Instrumentation: Measurement changes during study
- Selection: Pre-existing group differences
- Mortality: Differential dropout
Control Techniques
Randomization
Random assignment to treatment and control groups ensures groups are comparable on average.
- Controls for both known and unknown confounders
- Foundation of causal inference
Control Groups
A group that doesn't receive treatment, providing a baseline for comparison.
- Allows you to isolate effect of treatment
- Controls for history and maturation threats
Blocking
Group similar subjects together, then randomize within blocks.
- Reduces variance from known confounders
- Example: Block by age group, then randomize within each age group
Blinding
- Single-blind: Subjects don't know their group
- Double-blind: Neither subjects nor experimenters know
- Prevents expectation effects and observer bias
Design Principles
ANOVA Design Principles
- Replication: Multiple observations per condition
- Randomization: Random assignment to conditions
- Local control (blocking): Group similar units together
Best Practices
- Pre-register your hypothesis and analysis plan
- Calculate required sample size before starting
- Use appropriate control conditions
- Minimize time between treatment and measurement
- Document everything—procedures, deviations, observations
Conclusion
Key Takeaways
- Systematic errors (bias) skew results; random errors add noise
- Internal validity: Did treatment cause effect?
- External validity: Can results generalize?
- Randomization controls for known and unknown confounders
- Control groups provide baseline for comparison
- Blocking reduces variance from known factors
- Blinding prevents expectation and observer bias