What are AWR and ADDM and how are they related?

In Oracle 10g, one of the major changes to the database was the AWR and the ADDM.

AWR (Automatic Workload Repository)
Purpose: To collect statistics about the database automatically, without DBA intervention.
Snapshots of the database are taken every hour by default, and statistics derived from these snapshots are saved for 7 days by default.
The statistics are created through a separate background process called MMON (manageability monitor process).

ADDM (Automatic Database Diagnostic Monitor)
Purpose: To analyze the data in the AWR, without DBA intervention. The ADDM will analyze the statistics and save the results in the database. If the parameter STATISTICS_LEVEL is set to TYPICAL or ALL, ADDM is triggered every hour by default, right after a new snapshot has been taken by the AWR.