Multi-level PAM, or multi-level pulse amplitude modulation, is a technique used in digital communication to transmit information efficiently. It encodes data by varying the amplitude of multiple signal levels, allowing for the representation of more bits per symbol compared to traditional binary systems. This increases the data rate and improves bandwidth utilization. In multi-level PAM, each signal level corresponds to a unique combination of bits. For example, 4-PAM uses four different amplitude levels to represent two bits of information. This method is particularly useful in applications like fiber optic communication and wireless networks, where maximizing data throughput is essential.