When a wireless signal travels from a transmitter (Tx) to a receiver (Rx) it undergoes some changes. In simple terms the signal s(t) is scaled by a factor h(t) and noise n(t) is added at the receiver. Letâ€™s take this discussion forward with a simple example. Suppose the Tx transmits one of two possible symbols, +1 or -1. In technical lingo this is called Binary Phase Shift Keying (BPSK). If the channel scaling factor is 0.1 we will either get a +0.1 or -0.1 at the Rx to which AWGN noise is added. The noise is random in nature (having a Gaussian distribution) but for simplicity we assume that it can have one of two values, +0.01 or -0.01.

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