The document discusses the theory of signal detection and how it accounts for the influence of background neural noise and subjective criteria on sensory thresholds. It explains that neural activation is needed for stimulus detection and varies due to background neural noise. When the stimulus is present, neural excitation results from both the stimulus and noise. Different criteria affect detectability, with lax criteria resulting in more hits but also false alarms, while strict criteria yield fewer hits but also fewer false alarms. Rewards and penalties can influence a subject's criteria.