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Read this: The Hitchhikers Guide to Encoding: And Another Test...(Or PSNR and all that...)

Summary: It is one of the methods used to evaluate the effect processing has on signals and ultimately picture quality. PSNR is a derivative of the Signal to Noise Ratio comparing the maximum possible signal energy to the noise energy 1. PSNR has been shown to have a high correlation to subjective picture quality eyeballs when a single codec is used and cross-references between sequences are not made 2. - link

The Hitchhikers Guide to Encoding: And A…

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