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A method of digitally encoding analog signals, which method uses a single-level or multilevel sampling system in which the value of the signal at each sample time is predicted to be a linear function of the past values of the quantized signal. Note: LPC is related to adaptive predictive coding (APC) in that both use adaptive predictors. However, LPC uses more prediction coefficients to permit use of a lower information bit rate than APC, and thus requires a more complex processor.