Suppose that the variable has standard deviation n and that


Two models of information transfer:- 

Consider a random variable whose value is transmitted.

(a) Suppose that the variable has standard deviation n and that the true value is transmitted with noise of standard deviation 1. What is the amount of information transmitted?

(b) Alternatively, suppose that the variable has n equally probable values, and the actual value is transmitted exactly. How much information is transmitted?

(c) As n → ∞, how do these values compare?

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Business Management: Suppose that the variable has standard deviation n and that
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