can someone explain what noise basis and distortion do in the displacement modifier i provided an example

Hi man, don't feel stupid for not knowing this!

The noise basis is the 'start' or basis noise. The distortion distorts that noise. The easiest way to see what is happening is by looking mostly at the Preview and set the Amount (which is the amount of distortion of the basis noise) to 0, so you only have the basic noise (try the different noise patterns that are available) and then slowly increase the distortion Amount to se how the noise gets distorted:

i did some experimenting and it seems like when you increase the distortion the shape changes (i guess it gets distorted) is this correct?

Yes, indeed, the basis noise gets distorted according to the noise pattern/type, specified in the distortion field.

thanks for the help :)

mman5678 I suggest trying a different texture like a wave texture to see the effects of the distortion more clearly.  Noise is, well, noisy, so it's difficult to tell.  But I think your understanding is correct.