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An Analog Signal is a continuous signal, just like an electric current that flows through the copper cables when your electrical appliances are turned on. This continuous signal represents physical measurements. An example of this would be with an analog audio signal, the voltage amount of the signal changes continuously with the change in sound waves. Analog Signals are normally represented as electrical signals, but there is also Classical Mechanics, Pneumatics, and Hydraulics technique's that can be used in analog signals.
Analog signals are transmitted as electrical waves.
A transistor in the right circuit, contributes a POWER GAIN by taking energy from an external power supply. A transformer actually has losses but is primarily used for Impedance Matching. This is very useful in establishing the most efficient arrangements for transmitting power from the source to the load. Impedance matching is an important function of all power transfer systems.
In digital communications, a digit is either a one or a zero, or an "on" or an "off" signal. The wave shape that is composed of "on's and off's" is the square wave.
There are two types of modulations. They are amplitude modulation and frequency modulation. In AM, amplitude of the signal is modified. In FM, frequency is getting modulated. Frequency modulated with carrier waves are transmitted and received by receivers without any distortion.