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I am trying to understand the analysis by synthesis in speech coding. In wikipedia it is mentioned for the CELP encoder:

The main principle behind CELP is called Analysis-by-Synthesis (AbS) and means that the encoding (analysis) is performed by perceptually optimizing the decoded (synthesis) signal in a closed loop.

What I cannot understand is, how is the encoding performed by optimizing the decoded code? Isn't the code decoded at the receiver?

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