In a hypothetical study evaluating the effect of mood on memory, participants in a positive mood condition might score higher on a memory task than those in a negative mood condition. However, if participants in the positive mood condition also possess substantially higher intelligence quotients (IQs) on average than those in the negative mood group, IQ acts as a confounding variable. This systematic difference provides an alternative explanation for the results, making it unclear whether the positive mood or the higher intelligence caused the superior memory performance.