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Can someone describe briefly what is it and why it is done in context of MP3. I know what quantization is but i am not able to properly interpret its meaning
You know by using qunatizer we make analog digital conversion.This of course the opposite of quantization.Think that you have quantized cosine wave and you want to convert to analog.Simply you may connect the peak values of the discrete signal.Then you have DISTORTED cosine wave.Of course this is the simplest way you need dsp hardware to get better results.
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