This paper discusses optimizing noise shaping, with or without dither, using filtered error-feedback round a quantizer. We show that any desired noise frequency spectrum can be approximated arbitrarily well. The optimal (i.e. minimum) noise level for a given spectrum is shown to be obtained if the error-feedback filter satisfied a "causality" type condition, and the noise level is that that preserves the digital channel's Shannon information capacity. Uses for optimizing a wide range of digital audio systems are discussed.
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