I'll give it a try, but it's not easy to explain since i'm translating from dutch and even in dutch it's hard to explain

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Typically a radar sends out pulses, which are reflected by an object and recieved by the radar again. If you look at the signals in time, you would get a big pulse at t=0 and a (much) smaller pulse at t=Dt. Without any noise/distortion you could just measure the time Dt and calculate the distance. In practice of course there is a lot of noise on the recieved signal, but both pulses are still in there, even if there completely "covered" by the noise.
The important thing about noise is that it is fully random (general assumption). This comes in handy when you want to extract the pulses from the signal. This is done by using the autocorrelation - function (translation?) of the signal. It takes two points in time on a signal and compares the values at those points in time. Noise is assumed to have no correlation.
So the only correlation inside your signal comes from the pulses transmitted by the radar and reflected of the object. Altough the second pulse will be very small, it is still a pulse, with a shape similar to the original pulse. When you calculate the autocorrelation of the signal, you are not bothered by the noise (because it has no correlation). This autocorrelation will be maxed for a time - shift of Dt, which will be exactly the time between pulses.
Hope this makes sence,
Menel.