Final answer:
The 'simulate_observations' Python function simulates rolling a six-sided die 7 times, storing the results in an array named 'observations'.
Step-by-step explanation:
To write a Python function called simulate_observations which returns an array of 7 simulated modified rolls, we can use the random module's randint function to simulate the rolling of a six-sided die. The code snippet below defines the function that generates 7 random numbers, each representing the outcome of a die roll, and stores them in an array called observations.
import random
def simulate_observations():
 results = []
 for _ in range(7):
 roll = random.randint(1, 6)
 results.append(roll)
 return results
observations = simulate_observations()
print(observations)
Each number in the array would be between 1 and 6, representing each side of a fair, six-sided die. Note that the modification mentioned in the question is not specified, thus the standard roll result is used.