We study the properties of mixed states obtained from eigenstates of many-body lattice Hamiltonians after tracing out part of the lattice. Two scenarios emerge for generic systems: (i) the diagonal entropy becomes equivalent to the thermodynamic entropy when a few sites are traced out (weak typicality); and (ii) the von Neumann (entanglement) entropy becomes equivalent to the thermodynamic entropy when a large fraction of the lattice is traced out (strong typicality). Remarkably, the results for few-body observables obtained with the reduced, diagonal, and canonical density matrices are very similar to each other, no matter which fraction of the lattice is traced out. Hence, for all physical quantities studied here, the results in the diagonal ensemble match the thermal predictions.PACS numbers: 05.70. Ln, 05.45.Mt, 02.30.Ik Despite advances, the emergence of thermodynamics from quantum mechanics is still a subject under debate. How to derive, from first principles, proper ensembles leading to the basic thermodynamic relations is not yet entirely clear. According to the concept of canonical typicality [1], the reduced density matrix of a subsystem of most pure states of manyparticle systems is canonical. The proof of this statement requires a partition of the original system into a small "system" and a large "environment". However, suppose, for example, that our universe is in a pure state and that we trace out only a finite number of degrees of freedom. Can we describe the rest of the universe using statistical mechanics? How much one needs to trace out, how well the notion of canonical typicality works in finite systems, and which quantities will be more or less affected by the fraction of the original system traced out are questions that have received little attention. They are the more pressing given the progress made in experiments with ultracold gases [2].We can discuss these issues in the context of entropy. If one takes an eigenstate of a generic many-body Hamiltonian and traces out the "environment" (E), the grand canonical (GC) ensemble is the appropriate ensemble to describe the system (S) that is left, where the total energy and number of particles fluctuate. One immediately realizes that the GC-entropy, S GC , must be different from the von Neumann entropy, S vN , if only a small fraction of the original system is traced out. In this case, S vN is extensive in the size of the environment, instead of in the size of the system as S GC . This follows from the fact that, for a composite system S + E in a pure stateρ = |Ψ Ψ|, the reduced von Neumann entropy is defined aswhere the Boltzmann constant is set to unity and the reduced density matrixρ S = Tr Eρ and similarlyρ E = Tr Sρ . S vN has been widely used to measure the entanglement in bipartite systems [3]. If the pure state is separable,ρ =ρ S ⊗ρ E , then S vN = 0, while maximum entanglement leads towhere D is the smallest dimension of the two subsystems. The source of the disparity between S vN and S GC is the information present in the off-diago...