What does noise margin mean?
Noise may be defined as the combination of unwanted interfering signal sources whether it comes from crosstalk, radio frequency interference, distortion, or random signals created by thermal energy. Noise impairs the detection of the smallest analog levels which may be resolved within the demodulator. The noise level along with the maximum clip level of an analog signal path set the available amplitude dynamic range. The maximum data rate of a modem is limited by the available frequency range (bandwidth) and signal-to-noise ratio (SNR) which is amplitude dynamic range. If more of either is available, more bits may be transferred per second.