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But how is it actually changing the color? The code sets the value of a local variable color, but nothing is actually done with that local variable.

And how does this relate to the color that is defined in the actionPerformed method?

I have moved your post to a more appropriate forum...



Color color = getBackground();
if(event.getSource()== day)
color = Color.YELLOW;
else if (event.getSource()== night)...