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Dec 12, 2017 at 2:15 comment added Jim Clay 2) All else equal, yes, more channel noise means less channel capacity. 3) No, Shannon's entropy does not tell us what the capacity is. The information theory concept that is related to channel capacity is mutual information. If $X$ is the transmitted signal and $Y$ is the received signal, the mutual information between the two is due to the channel.
Dec 12, 2017 at 2:12 comment added Jim Clay 1) Not necessarily. There are two ways to have a high signal-to-noise ratio: have low noise, or transmit a lot of power. Your paranthetical is correct, though- high SNR implies that the noise is lower than the transmitted signal (actually, it implies that it is higher than the received signal, but close enough).
Dec 11, 2017 at 22:37 vote accept Ria George
Dec 11, 2017 at 21:35 history edited MBaz CC BY-SA 3.0
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Dec 11, 2017 at 20:51 history answered Jim Clay CC BY-SA 3.0