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Dynamic range in another context also refers to the maximum clean output of a system in relation to the ambient noise level of the room. So, even if you have equipment with say 100db signal to noise, and the system is capable of say 100db max, if the ambient level in your room is 45db, the best you'll get is 55db dynamic range.
Signal-to-noise ratio is closely related to the concept of dynamic range, where dynamic range measures the ratio between noise and the greatest un-distorted signal on a channel. SNR measures the ratio between noise and an arbitrary signal on the channel, not necessarily the most powerful signal possible. Because of this, measuring signal-to-noise ratios requires the selection of a representative or reference signal. In audio engineering, this reference signal is usually a sine wave, sounding a tone, at a recognized and standardized nominal level or alignment level, such as 1 kHz at +4 dBu (1.228 VRMS).
As a related question, what is the calculation of Redbook CD's dynamic range? I was doing this, based upon the number of possible voltage levels:DR = 20 * log(2^16) = 20 * log(65536) = 20 * 4.8165 = 96.33dBIs this correct?