Application virtualization is isolating an application from the underlying operating system. PERIOD.
The added bit about testing is like saying legs are for walking. no they are also for jumping and squatting and kicking and... badly formed question/answer.
Sandboxing refers to the practice of creating a controlled and isolated environment for an application to run independently of the underlying operating system. In a sandboxed environment, the application's access to system resources and interactions with other software components are restricted and closely monitored
Answer is correct but indeed be mindful that application virtualization allows applications to run in environments that do not suit the native application. For example, Wine allows some Microsoft Windows applications to run on Linux.
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