The maximum rate at which nearly error-free data can be theoretically transmitted over a communication channel is defined as

Channel capacity:

• Channel capacity is the maximum rate at which the data can be transmitted through a channel without errors.
• The capacity of a channel can be increased by increasing channel bandwidth as well as by increasing signal to noise ratio.
• Channel capacity (C) is given as,

          \(C=B \log_2(1+\frac{S}{N})\) 

Where,

B: Bandwidth

S/N: Signal to noise ratio

Additional Information

Entropy:

The entropy of a probability distribution is the average or the amount of information when drawing from a probability distribution.

It is calculated as:

\(H(x)=\underset{i=1}{\overset{n}{\mathop \sum }}\,{{p}_{i}}{{\log }_{2}}\left( \frac{1}{{{p}_{i}}} \right)bits/symbol\)

pi is the probability of the occurrence of a symbol.