Consider the following scenario:
You have a particle detector that clicks when a quantum particle is near its vicinity. This is a "position measurement." Therefore, under the Copenhagen interepretation, this "collapses" the wavefunction to a particular position. The new wavefunction is now some localized position of the particle. This wavefunction propagates over time, and you could mathematically calculate the probability density for where you are likely to measure it next.
If your detector was perfect, it would collapse the wavefunction to a Dirac Delta. But, your detector wasn't perfect, and so you don't know the actual location of the particle perfectly. There seems to be two choices here:
- Say that the collapsed wavefunction is actually something like a sharply peaked Gaussian (or a top-hat function, or anything sharply localized).
- Say that the collapses wavefunction collapses to a position ket (Dirac Delta), but you don't know which one, so you describe the system as a density matrix over the possible positions. This density matrix can have an identical probability mass as the wavefunction squared described in (1) above.
Now, these two approaches will lead to different predictions. So which is correct? In this idealized setup the "right" answer is probably (1), but the boundary between the two gets more difficult to precisely delineate in real world scenarios where the density matrix is actually used. For example, for a quantum many body system, where you describe it with some density matrix, will this density matrix approach give different predictions than if you had just assumed the system was in some pure state, and you put all of your "uncertainty" into the wavefunction itself?