Two experiments involving level and spectral shape discrimination which test an optimal channel model developed by Durlach et al. [J. Acoust. Soc. Am.80, 63–72 (1986)] are described. The model specifies how the auditory system compares and/or combines intensity information in different frequency channels. In the first experiment, psychometric functions were obtained for the discrimination of changes in level and discrimination of changes in spectral shape for an eight-tone complex sound. A variety of different base spectral shapes were tested. In some conditions, level randomization was introduced to reduce the reliability of across-interval changes in level. Increasing the amount of level variation degraded performance for the level discrimination task but had no effect on the shape discrimination task. In all conditions, sensitivity to changes in spectral shape was superior to sensitivity to changes in level. Consequently, two models of central noise are evaluated in an attempt to explain these results; one in which central noise acts prior to the formation of the likelihood ratio and one in which central noise degrades the likelihood ratio. The former model is more successful in accounting for the data. In a second experiment, the detectability of a level increment to one component of a multitone complex was measured. The frequency content of the complex was varied by systematically removing six components from a 23-component complex. Thresholds were measured for increments at three different signal frequencies. A common trend in the data was that when there was a spectral gap directly above the signal frequency, thresholds were lowest. This result differs from the predictions of a simple channel model, and contrasts with results presented by Green and Berg [Q. J. Exp. Psychol.43A, 449–458 (1991)].