Here is a discussion of distortion vs number of bits:
http://en.wikipedia.org/wiki/Signal-to-noise_ratio

and here:
http://en.wikipedia.org/wiki/Quantization_error

The key equation you will find over and over is:

Signal to noise Quanitzation Noise Ratio(SQNR)is:

SQNR = 1.761 _ 6.02 * (Q) (in dB), where Q is the number of bits that
are used to digitize the signal.

Terry


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