The correct category of interest that describes the true state of nature for a statistical decision, independent of any observations. In many cases it may be impractical or impossible to irrefutably determine the true state of nature.
The actual (possibly unknowable) correct answer when a decision is to be made.
The correct category of interest that describes the true state of nature for a statistical decision, independent of any observations. In many cases it may be impractical or impossible to irrefutably determine the true state of nature.