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it is intended to decorrelate the quantization noise from the signal.
Basically, if you have a sine wave, which is then quantized, you will find that you round to the same set of numbers every cycle. This means that the quantization error is also periodic. In this case, the noise due to quantization will appear as spurs -- high peaks in the spectrum.
By adding a small amount of noise to the signal before quantization, it is possible to force the quantization error to be significantly less periodic, thus reducing the spurs.
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