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Lossy compression reduces the number of bits by identifying and eliminating
statistical redundancy. In lossy compression some loss of information is
expected. Detail is dropped from the data to save storage space. An
example of this type of compression would be what compression used on
images such as .jpeg files. JPEG image compression works firstly by
"rounding off" less-important visual information. There is a trade-off between
information lost and the size reduction. This lossy compression formats are
used in music, images, and video files. No information is lost in lossless
compression. Compression is useful as it helps reduce storage space.