Understanding the scientific method has become increasingly important for members of the diamond industry. Manufacturers, dealers, and retailers continually make important business decisions, and these decisions are often based on competing claims about diamond appearance, especially as it relates to the diamond's proportions. These competing claims make the scientific method essential, because only through research conducted using the scientific method can we critically evaluate the basis of these claims (i.e., the assumptions or hypotheses on which these claims rely). By comparing different claims in this way, we are better able to determine which claims have the highest validity, and this allows for more reliable business decisions.

The scientific method (as it is now understood) was described by Karl Popper in 1934. Before then, the method of induction often was used to find truths about the world. Induction assumes facts about the world solely through the observation of instances, that is, empirical evidence (e.g., we notice that all of the grapes we have eaten in the past had seeds, and therefore decide "all grapes have seeds"). Unfortunately, induction has several weaknesses. For example, researchers may never know if they have seen a complete sample of the instances in question (e.g., we may never have eaten seedless grapes). Also, there is a possibility that conscious or unconscious observer biases may affect the results (e.g., we may think that all grapes should have seeds, and so all seedless "grapes" are not really grapes at all).

Nevertheless, although one can never conclusively prove the truth of a claim through empirical observations, one can disprove it through observations of negative instances, which is called falsification. Falsification leads to critical and rigorous science by testing for ways in which a currently held or proposed claim might be false or inaccurate (e.g., we purposefully examine all types of grapes that we can find to see if we can locate a type of grape without seeds).

The root of any claim or theory about phenomena in the world is an idea. The idea is stated as a hypothesis (i.e., a clear prediction of a phenomenon's nature or behavior in a given situation). This hypothesis must be formulated in such a way that suggests a test or experiment that can prove it false (e.g., "All grapes have seeds").

In addition, the hypothesis must have specified testing procedures that are detailed and repeatable. This allows future falsification tests to be conducted by any group of scientists; the more independent falsification tests a hypothesis withstands, the more reliable and valid it becomes. Once a hypothesis has been validated, another important step in the scientific process is to publish it, along with its testing procedures, in a peer-review journal. This encourages further scrutiny of the hypothesis and its results.

Computer modeling sometimes may be used to provide another level of predictive power. In these cases, a falsifiable hypothesis would be formulated to test whether a computer model provided accurate results (e.g., whether it gave similar results to another form of testing, such as observation tests).

Additionally, mistakes are often a crucial part of the scientific method. Rigorous testing sometimes brings to light new aspects of a hypothesis or aspects that need to be tested further. These further tests may lead to amendments to the hypothesis or even its replacement with a new, and hopefully more accurate, version.

The only absolute certainty one can have in science is that a particular hypothesis is false. However, the more falsification tests a hypothesis withstands, the more justified one is in believing it to be valid. A hypothesis that withstands this scrutiny becomes known as a theory. However, even accepted theories are provisional, and eventually may be proven false and replaced.

Because all truths are "provisional" in science, scientific truth often creates difficulties for the practical world of business. Businesses are forced to make policy decisions based on theories that are reliable (i.e., hypotheses that have withstood numerous and rigorous falsification tests), but are never absolutely certain. Such hypotheses must be submitted to the most rigorous falsification tests possible, to insure that policy decisions are based on valid and reliable hypotheses.

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