Abstract: Wavelet transform coding has the potential to offer a lot of benefits with respect to image compression and image filtering as well. The later aspect is of importance in machine processing of high entropy images such as Synthetic Aperture Radar images obtained by the European Remote sensing Satellite (ERS-1). A mathematical model is developed to study the relation between a specified Mean Square Error, the value of the wavelet coefficient threshold and the maximum number of resolutions used. The wavelet compression method is compared with other compression methods like JPEG standard and Vector Quantization for a number of different (in a statistical sense) images amongst others LENA.!10
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