...Over the next few days I will try to explain my simulations better, if that is of interest.
In order to avoid one long post let me break the explanation into several posts.
I will start by saying that I break the problem into two parts. One is the effect of how the use of a limited number of bits to express a visual value affects the ability to represent a smooth gradient. The other is how this fits into the issue of non-linear encoding, roughly speaking gamma encoding.
The graphs I posted on October 9 only directly addresses the first of these issues, and it applies to the final representation of the visual values, regardless of whether the data were preceded by some king of non-linear transformation.
Let me explain this a little more fully. It deals with the noise level after any non-linear transformation has taken place but before the final conversion a limited-bit length word, such as 8 bits. Let me give an example. Suppose I sampled a broad swath of an image at 8 different points, further supposing that the brightness of the image is uniform, aside noise. Suppose that the 8 points had brightness values as follows.
100.6906242532
99.396805972893
101.19426770206
101.15985550029
98.891767840316
98.533563693782
100.05704085416
100.07607418688
(For our purposes it doesn't matter if there has been a non-linear transformation applied to these data prior to obtaining the numbers listed above, i.e. by whatever means were used to generate those 8 numbers, those are the ones we are going to process by converting them to a precision digital word.)
The set of 8 numbers listed above has a mean of 100 units and a standard deviation of one unit.
Conversion to a limited word length digital number is essentially the process of rounding the numbers. Let us assume that we will be converting to an 8 bit number and that the maximum value in the system is 255. In this case, after rounding of the data the list above becomes
101
99
101
101
99
99
100
100
This new list also has a mean of 100.
Now suppose I sample 8 different points in a different region of the picture. This other region may have a different brightness from the first region. Suppose the values (before converting to an 8 bit word) are as follows:
100.9406242532
99.646805972893
101.44426770206
101.40985550029
99.141767840316
98.783563693782
100.30704085416
100.32607418688
This set of points has a mean of 100.25 and a standard deviation of 1. If I convert these to a digital 8 bit word they become.
101
100
101
101
99
99
100
100
This list has a mean of 100.125, which is not quite the same as the ideal 100.25 but clearly an improvement over the case where the image was a noiseless. To see what I mean, suppose the image was noiseless and with a value of 10.25:
10.25
10.25
10.25
10.25
10.25
10.25
10.25
10.25
After conversion to an 8 bit word the list would look like this.
10
10
10
10
10
10
10
10
Which has a mean of 10, which is clearly less accurate than the average obtained from the noisy data.
By the way, the mean of 100.125 obtained above for the noisy data does not equal the "expected" value of 100.25, but that is mostly a statistical fluke. I did the same calculation with a million noisy numbers rather than 8 and got a mean value of 100.249702 for the rounded (i.e. data converted to an 8 bit representation) results, which is very close to the expected value of 100.25.
I hope this sheds a little more light on my simulations, though I doubt if answers all questions about it.