Regarding when you 'compress' the signal, I typically see diagrams like this: And the companding curve: I can only see how the companding curve achieves a higher average SQNR by rounding down hig
Plots of the exponential companding and proposed method for d = 2
Comparison of µ-law and A-law algorithms. The µ-law algorithm
Transfer function of µ-law companding.
COMPANDING-CIRCUIT-USING-OPAMPS, Mini Projects
Multiband Dynamic Range Compression - MATLAB & Simulink
Companding algorithms for digital communication
COMPANDER, Mini Projects, Electronics tutorial
PDF] Optical Companding
Dynamic range compression - Wikipedia