Compression
Compression is the process of coding that will effectively reduce the total number of bits needed to represent certain information.
Input data -> Encoder compression -> Storage or network -> Decoder decompression -> Output data
If the compression reduce no information loss, then the scheme is lossless compression, otherwise it is lossy.
Compression ratio is the ratio of number of bits before compression and number of bits after compression.
So,
Compression ratio = (Number of bits before compression) / (Number of bits after compression)
=B0/B1
where, Bo = Number of bits before compression and
B1 = Number of bits after compression.