AlibomicsMoney and Economics
CONCEPT LESSON

Randomised experiment

A study assigning treatment by chance to make groups comparable in expectation.

Why it matters

Assignment by chance can help separate an intervention from pre-existing group differences. Good implementation and interpretation are still needed after randomisation.

A worked example

Eligible customers are randomly assigned to receive a reminder or not. Comparing average outcomes can estimate its effect under a valid design.

Illustrative example · simplified assumptions

A common mistake

Assuming random assignment makes findings representative of everyone.

Where the idea needs care

Non-compliance, attrition, spillovers and sampling limits still matter. Random assignment is not the same as random population sampling.

Apply the idea

Explain this concept using a different example from your spending, work, business or a policy debate. State what stays fixed and what could change the result.

CHECK YOUR UNDERSTANDING
What does random assignment primarily help with?

Read the answer and explanation

Comparability of treatment groups. Non-compliance, attrition, spillovers and sampling limits still matter. Random assignment is not the same as random population sampling.

Sources and further study

Examples and explanations by Alibomics. Numeric illustrations are not current market quotations.