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This lecture concludes the third chapter with an example illustrating the application of communication system concepts in the presence of noise. The transmission of a signal through a communication channel is explored, focusing on binary transmission and the impact of noise. The lecture covers the signal encoding, channel response, noise effects, matched filtering, and error detection. The instructor explains the process of determining the optimal threshold for signal detection, considering the probabilities of bit transmission and the characteristics of noise. The lecture delves into the calculation of error probability and the significance of error rates in communication systems, emphasizing the impact of noise levels on error rates and the importance of accurate signal detection.