Although RIL, SDL and LADA are slightly different, the main operating principle is the same and the theory for defect localization presented in this paper is applicable to all three methods. Throughout this paper the authors refer to LADA, as all experimental results in this paper were obtained with a 1064nm laser on defect free circuits. This paper first defines mathematically what 'signal strength' actually means in LADA and then demonstrates a statistical model of the LADA situation that explains the optimal conditions for signal collection and the parameters involved. The model is tested against experimental data and is also used to optimise the acquisition time. Through this model, equations were derived for the acquisition time needed to discern a LADA response from the background noise. The model offers a quantitative tool to estimate the feasibility of a given LADA measurement and a guide to optimising the required experimental set-up.