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By: Dr. Mei-Jie Zhang, PhD, Professor, Division of Biostatistics, Medical College of Wisconsin Abstract: Randomized clinical trials are often considered the gold standard in evaluating the treatment effect. However, randomized clinical trials are not always feasible due to various reasons. Thus, researchers need to study the treatment effect using observational data. For a non-randomized study cohort some prognostic risk factors are imbalanced between treatments. Without any adjustment, the observed treatment effect may come from the difference in risk factors rather than the effect of the treatment. Recently, the method of propensity score has been developed for estimating the treatment effect in observational studies. In this lecture we will discuss the definition of propensity score; the background and motivation of developing propensity score method; propensity score estimation method; propensity score matching; estimating treatment effect using propensity including matched pair analysis and regression adjustment and stratification.