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the last time we met we were exploring digital modulation methods specifically the quant methods we had walked our way through 16 64 40 96 32 768 and we asked ourselves is there a limit to the number of unique levels that could be used and it turns out there is because of noise today were going to briefly explore that noise but more importantly were going to introduce one of the most fundamental equations for this entire class known as the shannon hartley limit the argument goes something like this suppose we have a 16 clam system this is important to us because the channel capacity in bits per second is equal to the baud rate by log base 2 of the number of symbols in this particular example with 16 quantum there are 16 unique symbols so at any particular time this vector will point to one of the dots it will stay in that position for the time defined by the baud rate because there are 16 unique symbols the channel capacity is 4 times the baud rate because log base 2 of 16 is equal