A novel method is presented for the purpose of signal to noise ratio improvement of transient evoked otoacoustic emission based on multirate signal processing. Some evidences show that a wavelet and multiresolulion like transform done by human auditory system. Thus, it seems that otoacoustic emission signal processing based on wavelet analysis is very applicable for selecting the best bases function and best decomposition tree. By applying this analysis, the correlative noise would be canceled. Therefore, the wave reproducibility can be increased without loss of measuring reliability. The wave reproducibility is considered as the best criteria for screening. In abnormal cases where response is not expected the correlative noise is considered as response are completely disappeared. Thus, this reduces the test duration and reliability.