Defines the key distortion measures for quantizer analysis: MSE, NMSE (= E[δ²]/E[X²]), MSRE (= E[(δ/X)²]), SQNR (= 10·log₁₀(1/NMSE) dB). Also defines auxiliary quantities α, β, γ, ρ with their algebraic identities, and the centroid condition (E[δ|X ∈ Sₖ] = 0) which simplifies β=0, α=NMSE, γ=1−NMSE.
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