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This lecture covers the difference between experimental and observational studies, highlighting the pitfalls of the latter. It provides tools for drawing valid conclusions from 'found data' and motivates reading key books in the field. The instructor discusses randomized controlled experiments, the limitations of randomization, and the advantages of observational studies. The lecture delves into the concept of matching in observational studies, the balancing property of propensity scores, and sensitivity analysis. It concludes with a summary emphasizing the importance of these concepts for research projects.