What does "dazed" actually mean? (contains spoilers)

I think in gameplay terms, the dazed moodlet causes your sim to function a few skill points less in every skill. So a dazed level 10 guitarist would play with a 7 skill level or so.

In terms of simulation, it could refer to a variety of things. Sometimes they simply can't focus because their brain is mush, but sometimes I feel like it's an effect of consuming certain substances that could impair their judgment.