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The basic definitions of probabilistic languages and grammars are given. Derivations by such grammars are demonstrated and the probability distribution over the language generated by such a grammar is shown to have a sum-of-products form. Equivalence of probabilistic grammars is discussed and transformations on such grammars are investigated. The determination of a probabilistic grammar for a specified probabilistic language is investigated and the average word length of probabilistic languages is found. The compact encoding of probabilistic languages is investigated. The concept of information losslessness is extended to the infinite automata. Four classes of Coding Automata are defined and their operations are explained. Optimality is discussed in the coding schemes as is the type of language of the output code. The average code length of the four classes is compared. (Author)