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Introduction
¥The tasks of communication is to encode information as a signal level, transmit this signal, then decode the signal at the receiving end.
¥An analog signal varies continuously with time, and has an infinite number of possible signal levels.
¥A discrete signal changes only once during a certain time interval. The signal value during this time interval is one sample, and the interval length is called the sampling period.  Each sample has a infinite number of possible signal levels.
¥A digital signal is discrete, but each sample has a finite number of possible signal levels.  The limited number of levels means that each sample transmits a single information.  It also means that each sample can be represented as digital data, a string of ones and zeroes. 
¥A digital signal is preferred in computer communications because computers already store and process information digitally.