During my first statistics course I learned that a statistical model is a collection of probability measures $\mathcal{P}$, where we can index each measure by a 'parameter' $\theta$ such that $\mathcal{P} = \{P_\theta\,\,|\,\,\theta\in\Theta\}$.
My first question is: What exactly is $\Theta$?
I am now working on a project concerning nonparametric statistics where $\Theta$ is always an (infinite dimensional) vector space. However, when we look at the parametric normal family $\{N(\mu,\sigma^2)\,\,|(\mu,\sigma)\in\Theta = \mathbb{R}\times(0,\infty)\}$, then clearly $\Theta$ is no vector space.
A possible answer that I thought of was that $\Theta$ is in general a metric space (although maybe just a set is enough?), but then how do we mark the transistion between a parametric model and non parametric model. To only separate when $\Theta$ is an infinite dimensional vector space produces strange cases. For example: when we consider an infinite dimensional vector space, but interpret it as just a metric space, do we suddenly deal with a parametric model? That seems odd...
My second question: What exactly separates parametric and nonparametric models when we look at $\Theta$.
Thank you!