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I found this example code in Qiskit documentation.

Does this code signify that it is simulating noise as per the IBM Valencia quantum chip. If yes, what kinds of noise does it simulate? I executed the code below in the quantum lab and analyzed noise in qubit measurement in various quantum machines.

from qiskit import QuantumCircuit, execute
from qiskit import IBMQ, Aer
from qiskit.visualization import plot_histogram
from qiskit.providers.aer.noise import NoiseModel
provider = IBMQ.load_account()
backend = provider.get_backend('ibmq_valencia')
noise_model = NoiseModel.from_backend(backend)

coupling_map = backend.configuration().coupling_map

basis_gates = noise_model.basis_gates

circ = QuantumCircuit(3, 3)
circ.h(0)
circ.cx(0, 1)
circ.cx(1, 2)
circ.measure([0, 1, 2], [0, 1, 2])

result = execute(circ, Aer.get_backend('qasm_simulator'),
                 coupling_map=coupling_map,
                 basis_gates=basis_gates,
                 noise_model=noise_model).result()
counts = result.get_counts(0)
plot_histogram(counts)
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Yes. It seems like it is indeed adding noise to mimic the noise of Valencia. As to what kind of noise, I assuming that it takes the latest calibrated data, and incorporated the T1 errors and T2 errors along with the measurement errors too. The result will be different than the hardware run since the noise occur in the hardware is much more complicated than just these indicated parameters. But it should still give us a good, comparable result.

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