The formula to calculate the cost per bit is:
\[ \text{CPB} = \frac{C}{B} \]
Where:
Cost per bit is a measure used to determine the cost associated with each bit of data. It is calculated by dividing the total cost by the total number of bits. This metric is useful in fields such as telecommunications and data storage to evaluate the efficiency and cost-effectiveness of data transmission and storage solutions.
Let's consider an example:
Using the formula to calculate the cost per bit:
\[ \text{CPB} = \frac{500}{1,000,000} = 0.0005 \text{ dollars per bit} \]
This means that the cost per bit for this scenario is $0.0005 per bit.