An apparatus and method for processing a received signal that has been corrupted by a channel to generate a processed signal having less signal corruption than the received signal is disclosed. The apparatus stores the received signal, information specifying the probability that a symbol having a value I will be converted to a symbol having a value J by the channel, and information specifying a signal degradation function that measures the signal degradation that occurs if a symbol having the value I is replaced by symbol having a value J. The controller replaces each symbol having a value I in a context of that symbol in the received signal with a symbol having a value J that minimizes the overall signal degradation in the processed signal relative to the underlying noise-free signal as estimated via the observed statistics within that context.