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Dynamic range is the ratio between the maximum and the minimum signal that a sensor can acquire.
It indicates the ability of a sensor to produce an image of an area that includes both very low light (shadowed) and full light situations simultaneously with minimum noise or interference.
It could be described even as the ratio of the largest signal to the smallest signal, which can be distinguished from noise, in an image.
Dynamic range is usually expressed by the logarithm of the min-max ratio, either in base-10 (decibel) or base-2 (doublings or stops).