For a discrete memoryless channel with input and output , its information capacity iswhere is the mutual information and the maximum is over all input distributions. Capacity is measured in bits when logarithms have base two.
With rows indexed by outputs and columns by inputs , the channel matrix isThis is a binary erasure channel with erasure probability . Conditional on no erasure, the input is recovered exactly, whereas an erasure supplies no information. Thuswhich is maximized by the uniform input distribution. Therefore
Let . The merged channel is a Binary Z-channel: its second output occurs with probability , while the output has one bit of uncertainty only when . In terms of the binary entropy function ,At an interior maximum,so and . Consequently
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