This report describes Welch's method for computing Power Spectral Densities (PSDs). We first describe the bandpass filter method which uses filtering, squaring, and averaging operations to estimate a PSD. Second, we delineate the relationship of Welch's method to the bandpass filter method. Third, the frequency domain signal-to-noise ratio for a sine wave in white noise is derived. This derivation includes the computation of the noise floor due to quantization noise. The signal-to-noise ratio and noise flood depend on the FFT length and window. Fourth, the variance the Welch's PSD is discussed via chi-square random variables and degrees of freedom. This report contains many examples, figures and tables to illustrate the concepts. 26 refs.