In an earlier paper2, the adaptive quantization was suggested to improve the performance of digital systems. The theory of this scheme was developed and by using deterministic inputs, the effectiveness of the adaptive quantization was illustrated. In this paper the characteristics of the adaptive quantization are developed for a stochastic input. The mean square error in the output, the probabilities of the maximum percentage error, and the cumulative probability distribution of the percentage error for a stochastic input have been calculated for (a) an adaptive quantizer and (b) a uniform step quantizer.
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