 Entropy rate

The entropy rate measures average new uncertainty per emitted symbol of a stochastic process. Predictability from earlier symbols can make this much smaller than the information entropy of one symbol. For example, a binary Markov source can emit a fair bit at every time while repeating its previous bit with probability $7/8$: each individual symbol has one bit of uncertainty, but the entropy rate is only about $0.544$ bits per symbol.

For a finite alphabet source $X=(X_1,X_2,\dots )$, definewhen the limit exists. Base-two logarithms give bits per symbol. Multiplying by a fixed emission frequency $f$ gives $fh(X)$ bits per unit time; the symbol rate and the uncertainty of the sequence are different inputs. A strictly stationary process on a finite alphabet always has an entropy rate, equal to its conditional entropy rate.^[ref]

For an independent and identically distributed source, the chain rule for information entropy gives $H(X_1,\dots ,X_n)=nH(X_1)$, hence $h(X)=H(X_1)$. With dependence, conditioning reduces entropy and makes the past useful. The examples under Markov information source show this benefit using exact finite-block calculations.

The concept of **entropy rate** is rooted in information theory and is used to measure the average information production rate of a stochastic (random) process or a data source. In detail: 1. **Information Theory Context**: Entropy, introduced by Claude Shannon, quantifies the uncertainty or unpredictability of a random variable or source of information. The entropy \( H(X) \) of a discrete random variable \( X \) with possible outcomes \( x_1, x_2, ...