An exception is an unwanted or unexpected event, which occurs during the execution of a program (i.e, at run time) that disrupts the normal flow of the program’s instructions. Exceptions can be thrown either during run-time or during compile-time.
Java exception handling is managed via five keywords: `try`, `catch`, `throw`, `throws`, and `finally`. Any exception that is thrown out of a method must be specified as such by a `throws` clause. Any code that absolutely must be executed after a `try` block completes is put in a `finally` block.
A checked exception is an exception class that extends `Exception` in its signature. For a checked exception, each method that calls the method that throws a checked exception, will either to handle the exception (with a `try-catch` clause) or declare `throws` in its method signature. The compiler will complain if the exception is not handled by any method.
public class TooManyItemsException extends Exception { }
```
An unchecked exception is an exception class that extends `RuntimeException` is its signature. For an unchecked exception, if a method throws it and even no other methods catch it, then the compiler won't complain. However, while running the program, if the unchecked exception is thrown and not handled, it will crash the program.
Examples of unchecked exception signature:
```java
public class TooManyItemsException extends RuntimeException { }
All exception and errors types are sub classes of class `Throwable`, which is base class of hierarchy. One branch is headed by `Exception`. This class is used for exceptional conditions that user programs should catch. `NullPointerException` is an example of such an exception. Another branch, `Error` are used by the Java run-time system(JVM) to indicate errors having to do with the run-time environment itself (JRE). `StackOverflowError` is an example of such an error.

* Use `try-catch` (or `try-catch-finally`): Exceptions can be handled by catching specific exceptions using catch clause and handling each exception separately.
* Use `throws` clause: Exceptions can be thrown without being handled. If an exception happens, it has to be caught by the calling function.
Here is a practical example. Suppose you are using a Scanner object to input an integer. If the user enters a decimal instead of an integer, an error would normally occur, causing the program to end. However, if you add an exception clause as shown below, the error can be caught and allow your program to continue running.
```
Scanner input = new Scanner(System.in);
try
{
System.out.print("Enter an integer: ");
int num1 = input.nextInt();
System.out.printf("You entered the number %d%n", num1);
}
catch(InputMismatchException e)
{
System.out.println("Must enter a valid integer.");
input.nextLine(); //clear the input line of previous input
}
```
If an integer is entered, the "try" code block will execute successfully. If something other than an integer is entered, the "catch" code block will execute.
The core advantage of exception handling is to maintain the normal flow of the application. An exception normally disrupts the normal flow of the application which is why we use exception handling.
Tip: If you are not really sure of what kind of exceptions your application may throw, use the `Exception` parent class to catch any anomaly and use the `stacktrace()` function on the `Exception` object to debug what went wrong.