What is the difference between the methods sleep() and wait()?

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The sleep method is used when the thread has to be put aside for a fixed amount of time. Ex: sleep(1000), puts the thread aside for exactly one second. The wait method is used to put the thread aside for up to the specified time. It could wait for much lesser time if it receives a notify() or notifyAll() call. Ex: wait(1000), causes a wait of up to one second. The method wait() is defined in the Object and the method sleep() is defined in the class Thread.
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