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This tutorial covers the theory behind MPEG/audio compression. While lossy, the algorithm can often provide "transparent", perceptually lossless compression, even with factors of 6-to-1 or more. It exploits the perceptual properties of the human auditory system. The article also covers the basics of psychoacoustic modeling and the methods the algorithm uses to compress audio data with the least perceptible degradation.>
Davis Pan (Sun,) studied this question.