It isn't - or, better, a cogent understanding of quantum theory says we cannot completely know in this case, what is going on inside the box, without opening it up.
I have long maintained for a while that the crucial distinction between "classical" and "modern" physics is not so much something like "absolute space and time" vs. "relative and 'gooey' space and time", or "determinism" vs. "indeterminism" or anything else like that, but rather that it is that modern physics is physics in which specific, and fundamental (not derivable from anything else) new laws come into play that specially regard the behavior of information in the Universe, and I think a lot of the inability and misunderstandings surrounding modern physics generally comes from a sad historical accident in which that information theory was discovered later than the groundwork for such was first laid.
In the case of quantum theory, this manifests itself in the following. The most cogent understanding, I have found, is that the chief object of concern, the "mysterious" quantum state vector, is something that should not be attributed as being, or at least it cannot by default be identified with, a "property of the system". This is really a hang-over from pre-modern, Newtonian viewpoints, and the whole modern physics programme has been the progressive demolition of these as being the most useful when it comes to creating highly accurate ways of describing physical phenomena. Rather, what it is it is a mathematical model - so even in this understanding, we should not take it too "literally" - of information which is held by an "agent" about the system, in this case, the "cat".
That is, the $|\psi\rangle$ thingy that most commonly appears in these discussions does not, strictly speaking, belong "to the cat". It "belongs" to you, or, well, a mathematical model of "you" or something else suitable in "your" place. And that's an important point to make because that is necessary to disabuse one of the notion that quantum theory necessarily must be "anthrocentric": "agents" in this context really are just systems which are capable of storing information, acquiring information from the outside world by an interaction therewith, and then updating their internal information stores based on such input. Another perfectly good agent could be a non-human animal (yes, the cat), another could be a computer with sensors and recording data on a storage drive, another could be a robot of some sort with a reactive control system - as long as it meets the above properties, it's an agent. That's it.
What $|\psi\rangle$ describes regarding "you" is what "you" - the fictive one in the story that we are telling with the theory - what information you possess, and what it signifies. There are two basic terms, in this setup which are
$$|\mathrm{alive}\rangle$$
and
$$|\mathrm{dead}\rangle$$
which don't necessarily correspond to "the cat is alive" and "the cat is dead" but rather "your information describes a cat being alive" and "your information describes a cat being dead". Note that I have chosen that phrasing very carefully, and that's very important, because the difficulties in all this that often come up really boil down to not being careful and subtly equivocating or reifying things in ways that end up violating whatever assumptions one tries to make at the outset. I did not say "the cat is" something, and it is extremely important to wean one from that idea. There is no supposition that the information pertains "accurately" to the cat, rather it is information solely in a "register" in "your" (or "the agent's") "mind" (or its hard disk, or RAM sticks, or whatever). The information here pertains to the question "Is the referent cat alive or dead?" and $|\psi\rangle$ encodes an answer to that question, stored by the agent. You should perhaps think of it less as a state and more as a datum , a piece of data, and hence I will refer to it as a datum from here on to reinforce this notion.
The "weird" data of the form
$$|\psi\rangle_\mathrm{weird} := \alpha |\mathrm{alive}\rangle + \delta |\mathrm{dead}\rangle$$
in this understanding, which cause all the trouble, are really just ways of saying, (after normalization so that $|\alpha|^2 + |\delta|^2 = 1$) "My information describes a cat being alive with probability $|\alpha|^2$ and dead with probability $|\delta|^2$". This information is incomplete: it doesn't say "the cat is simultaneously alive and dead", it says that the yes/no answer is less definite as to which one. This can be made a bit more rigorous thanks to the use of Shannon entropy, which basically measures, given an "answer" to a question stated as a probability distribution, how much it is lacking in information:
$$H[X] := -\sum_i P_i \lg P_i$$
which in this case becomes
$$H_\mathrm{aliveness}[|\psi\rangle_\mathrm{weird}] = -(|\alpha|^2 \lg |\alpha|^2 + |\beta|^2 \lg |\beta|^2)$$
and it allows us to say that the datum gives an answer to the question that is "worth" between 0 and 1 bit, i.e. a fraction of a bit, instead of being always worth 1 bit, as if I said "yes, it's alive" or "no, it isn't".
So now what? Well, in modeling the situation with quantum theory, being very careful, it goes like this. We (cruelly) put the (living) cat in the box and close it tight. Our current knowledge is summarized as
$$|\mathrm{alive}\rangle$$
We wait an interval $t_f$. After that time, we open the box. Our knowledge then becomes either
$$|\mathrm{alive}\rangle$$
(i.e. no change)
or we saw something else, i.e.
$$|\mathrm{dead}\rangle$$
. That's it.
That's the whole "kit 'n kaboodle" when it comes to this. In these two cases, and only these two cases, is it "safe" to say that the information in question "corresponds with" "reality", in that the "real" answer as to the "aliveness" of the cat is one of these. When we aren't looking, we cannot say. "Looking" in the box is the interaction through which we acquire the new information.
What we can do, when we are not looking, is to use the Schroedinger equation - and the role of this should not be unduly elevated: what it really is is a predictive device, or an inference rule, that lets us deduce from a datum of information regarding a present situation, what it implies informationally about a future situation. When we do this with the cat, starting initially with $|\mathrm{alive}\rangle$, we get data that are a blend of $|\mathrm{alive}\rangle$ and $|\mathrm{dead}\rangle$ in the "weird" form above. But note: this is not, under this framework, necessarily what is "really" there. We can't know - it is just a prediction, and it gives a probability balance. If you want to think of it as anything, you should think of it likeyour weather forecaster, who can only give you the most probable result for what the weather will be. Hence, when it says what sseems like "the cat is 50% 'alive' and 50% 'dead'", it doesn't mean that under this understanding: it means "the predicted information is that at this time t, we can assign a 50% probability that if we query it now, we will get 'alive' and a 50% probability that if we query it now, we will get 'dead'".
Insofar as the "reality" is concerned - there are many different possible things that could happen here that could result in that coming out to be the case: and that's the thing, the theory doesn't provide enough information to tell which is which. That's why, as I said, it's a subjective theory.
But this is then where many others will get hung up - they tend to think that if it's a subjective theory, it must then "cloak" some kind of reality where the "real" answers are, in fact, "binary" in the sense that the "truth", no matter how it operates, is that a parameter of the system must have a value like "alive" or "dead" or "5.000... joules" or something like that at all times and then noting how this runs into various sorts of trouble.
But I would challenge that thusly: Quantum theory, under the assumptions we just gave - that the datum vector is subjective information, that upon querying / "measuring" a question or parameter it then acquires at that time "real" information, and the assumption of relativistic causality - suggests there are situations where in some sense the "real" parameters actually are these things we would define with probability distributions - in some sense, the "fraction of a bit" with "75% likely to be A and 25% likely to be B" is "all that exists" for that parameter, "for real".
And the way to see this is to consider systems more complicated than Schrodinger's cat: such as the electron in a hydrogen atom. If one performs what is called a "full-determination measurement", a query that acquires the values of the three electron quantum numbers $n$, $l$, and $m$, then at that point, the position and momentum parameters are fuzzy, i.e. they have probability distributions and nontrivial Shannon entropy, the quantum theory doesn't allow us to, say, add additional information (decrease the Shannon entropy) without then also losing information in the quantum numbers. Taking that such a measurement gives "as much information as possible", we have no really good choice except to conclude that this is the "real" amount of information that "really exists" and, hence, also when we aren't looking, it could also be that parameters, such as the cat's "alive/dead" state, are also similarly limited, but we don't know, because that's the limit of the theory's "objectivity".
If it does, though, it's not right to say the cat is both dead and alive, so much as to say that if the state referred to as such obtains "for real" in between, it is in some state in which the parameter represented by the "alive/dead" question has a fraction of an answer in it - a fractional bit, as Shannon would describe.