Definition (Closed-loop prediction gain)
In the difference quantization scheme we define the closed-loop performance gain as Here we can see the larger , the more is compact and easier to quantize.
Definition (Coding gain)
In the difference quantization scheme we define the coding gain of our closed-loop quantizer as
Definition (System SNR)
For a closed-loop predictive quantizer we define the system SNR in terms of the closed-loop prediction gain, and coding gain (not in dB) or simply in dB as:
Remark
and are interdependent hence we cannot fix one to maximize the other. Increasing does not necessarily increase , although in practice it usually does.