The thread: Compression is prediction
The model is the compressor
One stream of 32,768 symbols has an entropy of 3.886 bits per symbol, and 2.243, and 1.186, and 0.991, and 0.909. All five numbers are correct, all five are floors, and nothing about the data changed between them. The only thing that changed is how many preceding symbols the model was allowed to look at — which makes the entropy of a file a property of a decision rather than a property of a file.
What the libraries doThe dictionary that builds itself
LZSS contains no probability, no frequency table and no entropy calculation. Its entire model is a window of recent text and its only move is to say "the next nine symbols are the ones that appeared 1,200 positions ago". On a stream whose zeroth-order floor is 3.89 bits per symbol it spends 2.11, and widening its window past 4,096 makes it worse rather than better.
The data that is not a numberThe entropy that cannot see a copy
Two copies of a text have exactly the same symbol statistics as one, so every entropy on this site doubles when the second copy arrives and the second copy carries no information at all. The number of runs in the Burrows-Wheeler transform is 224 at two copies and 224 at thirty-two.
What is taught wronglyThe optimal code that is beaten
Huffman's code is optimal, the proof is correct, and on a stream where one symbol arrives 99 times in a hundred it spends 1.030 bits per symbol against an arithmetic coder's 0.119. Both facts hold. The word "optimal" in the theorem has a precondition attached that almost nobody quotes with it, and everything interesting about coding lives on the other side of that precondition.
The data that is not a numberThe phrases a text copies from itself
Four thousand characters of English-like text hold 604 phrases in the greedy parse and 1,219 runs in the transform. Thirty-two copies of one text hold 156 phrases and 233 runs. Two measures of repetition, neither of them an entropy, and they do not agree about which text is the more repetitive.
The index that replaces the textA block, a class and an offset
Replacing each block of a bit vector by how many ones it holds and which arrangement it is takes 7.6% off the grid. On a permutation with no structure at all it takes 2.6%, so five of the seven points are the data and two of them are the encoding.
StructuresThe tree the operation insists on
The compound walk means "everything that went left is smaller", which is true only if the leaves are in the alphabet's order. Huffman's tree is the smallest and its leaves are in frequency order, so the operation that makes a bidirectional search affordable costs the shape that makes an index small.