Fixed (nonadaptive) and forward adaptive differential pulse code modul
ation of regenerative composite sources is investigated. In the fixed
code, an approximate formula is given for the optimal value of the pre
diction coefficient. This is then used as an initial guess to optimize
the code (predictor and quantizer) through a numerical method. In the
forward adaptive scheme, the state of the switch in the composite sou
rce is estimated using a MAP sequence estimation algorithm, and the co
de is then matched to the mode process corresponding to the estimated
switch state. The performance of the two systems is evaluated with qua
ntizers of 4, 8, and 16 levels. The results show that the forward adap
tive scheme significantly outperforms optimized fixed DPCM in the sens
e of mean-squared error. Stochastic stability of the code is also esta
blished for the fixed DPCM scheme as well as for an adaptive scheme wh
ich receives the switch state as side information.