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Adjusting the offset has no direct effect on EQ, but it could change the filter recommendations (see next part).When you adjust the trace offset (db) and add the offest to data, does it do anything to the actual EQ? I think the answer is no, but I wanted to make sure it doesn't boost or cut frequencies by moving that offset.
The target curve shows the ideal response shape, it is the line the measurement would follow in a perfect world with no influence from the room, the sub/speaker characteristics etc. It acts as a reference for you and REW to use when looking at the measurement. When you use REW to make filter recommendations it sets up its filters to try and bring the measurement as close as possible to that target response. If the measurement is shifted (by using "add offset to data") that would move it relative to the target and so REW would suggest correspondingly different filter settings. Similarly if the level of the target response is changed that will alter the filter recommendations. Generally the target level is adjusted to bring it near to the middle of the measurement, so that the filter recommendations are used to compensate for the peaks in the measurement and not any overall level difference between target and measurement.Finally, can somebody explain in a REW-for-Dummies type answer, what exactly the Target Level (db) is and what it does to the EQ filters.