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What is the use of Companding?

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What is the use of Companding?

(a) in PCM transmitters to allow amplitude limiting in the receivers

(b) in PCM receiver to overcome impulse noise

(c) to overcome quantizing noise in PCM

(d) to protect small signals in PCM from quantizing distortion

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The query is from Modulation of VSB Modulated Wave topic in division VSB Modulation of Analog Communications

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Right option is (d) to protect small signals in PCM from quantizing distortion

The explanation is: Companding is the process through which the signal to noise ratio of a wave is reduced by compressing and expanding the signal. It decreases the number of bits required to record the strongest signal. Companding also improves signal to noise ratio. It is mainly used to protect small signals in PCM from quantizing distortion.

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