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-# CORPUS-0005
-## Hidden True State Versus Known State
-### Status: Training Corpus Seed
-### Layer: Layer_2--Uncertainty
-### Purpose: Teach that the simulation may contain a true state that the actor does not fully know
-### Repository Path: docs/training/corpus/Layer_2--Uncertainty/CORPUS-0005-hidden-true-state-vs-known-state.md
-
----
-
-## 0. Scenario
-
-A trader in Ostia considers sending oil to Capua.
-
-The simulation has a true current price in Capua.
-
-The trader does not know that true price.
-
-He only knows reports, signals, memories, and claims.
-
-The true state and the known state are not the same.
-
----
-
-## 1. Hidden True State
-
-The simulation may hold:
-
-| Hidden True State | Value |
-|---|---:|
-| Current Capua oil price | 17 asses |
-| Buyer urgency | low |
-| Rival shipment arrival | already arrived |
-| Available cart space | limited |
-| Warehouse capacity | tight |
-
-These values exist in the world whether the trader knows them or not.
-
----
-
-## 2. Actor Known State
-
-The trader may know only:
-
-| Actor Known State | Value |
-|---|---|
-| Reported Capua oil price | 22 asses |
-| Report age | three days |
-| Report source | muleteer |
-| Rival shipment | unknown |
-| Cart availability | not yet checked |
-| Warehouse capacity | rumor only |
-
-The actor is not acting on the hidden true state.
-
-He is acting on perceived state.
-
----
-
-## 3. Why The Difference Matters
-
-A trader can make a rational decision from his known state and still lose because the hidden true state differs.
-
-Example:
-
-Known state suggests:
-
-```text
-expected sale price = 22 asses
-expected total cost = 16 asses
-expected profit = 6 asses
-```
-
-Hidden true state resolves as:
-
-```text
-actual sale price = 17 asses
-actual total cost = 16 asses
-actual profit = 1 as
-```
-
-The decision may have been reasonable.
-
-The outcome is still smaller because the true state differed.
-
----
-
-## 4. Incorrect Model Behavior
-
-The model should not:
-
-- assume the actor knows the simulation's true state
-- judge the actor's decision only by the final outcome
-- expose hidden values directly in dialogue
-- collapse report, belief, and truth into one value
-- treat wrong belief as irrational when evidence was limited
-- treat hidden true state as player-facing knowledge
-
----
-
-## 5. Correct Model Behavior
-
-The model should separate:
-
-| Category | Meaning |
-|---|---|
-| true_state | what is actually true in simulation |
-| perceived_state | what the actor believes or estimates |
-| known_evidence | reports, signals, records, observations |
-| confidence | how strongly actor should trust perceived state |
-| action | what actor chooses from perceived state |
-| outcome | what occurs when action meets true state |
-
-The actor acts from perceived state.
-
-The world resolves from true state.
-
----
-
-## 6. Example Resolution
-
-The trader sends oil because the perceived state shows opportunity.
-
-Later, the sale reveals the current Capua price was lower than reported.
-
-Result:
-
-```text
-perceived opportunity: strong
-decision quality from known evidence: reasonable
-final arithmetic: small profit
-lesson: perception and truth differed
-```
-
-The model should not call the trader foolish merely because the hidden state was unfavorable.
-
----
-
-## 7. Simulation Use
-
-This principle supports:
-
-- hidden scenario states
-- partial observability
-- confidence tags
-- rumor systems
-- actor perception
-- delayed confirmation
-- fair failure
-- learning from outcome
-
-A good simulation can punish a decision without making the decision stupid.
-
----
-
-## 8. Layer-0 And Layer-1 Concepts Used
-
-This example uses:
-
-- `Layer_0/CORPUS-0007-information-arrives-unevenly`
-- `Layer_0/CORPUS-0008-rumor-is-uncertain-information`
-- `Layer_0/CORPUS-0012-every-venture-risks-loss`
-- `Layer_1/CORPUS-0003-arithmetic-resolves-the-venture`
-- `Layer_1/CORPUS-0005-rumor-before-confirmed-price`
-- `Layer_2/CORPUS-0001-stale-price-report`
-- `Layer_2/CORPUS-0002-conflicting-reports`
-
----
-
-## 9. Success Condition
-
-If the model can distinguish what is true in the simulation from what the actor knows, believes, or can reasonably infer, this file is functioning correctly.