Distinguish analog (continuously varying) signals from digital (discrete, on/off) signals and explain why digital signals resist noise better.
An analog signal varies smoothly and continuously, matching the original information exactly -- a dimmer switch can be set to any brightness in a continuous range, and a vinyl record's groove is a continuous wiggly line mirroring a sound wave's shape.
A digital signal encodes information as discrete values, almost always just two states (on/off, or 1/0), called binary. A regular light switch is digital in this sense. Digital signals resist noise well because a receiver only has to tell a 1 from a 0, even if the signal is a little degraded, while an analog signal's exact shape is changed by even small damage.
Mastery looks like: They classify real signals or devices as analog or digital and explain why digital signals resist noise better.
Common stumbles: Assuming "digital" always means "better" without understanding why; confusing a device's digital display with the signal it is measuring.