MPEG-1 and/or MPEG-2 Audio Layer III,[4] more commonly referred to as MP3 (or mp3), is an audio coding format for digital audio which uses a form of lossy data compression, which are data encoding methods that use inexact approximations and partial data discarding to reduce file sizes significantly, typically by a factor of 10, in comparison with a CD, yet still sound like the original uncompressed audio to most listeners. Compared to CD quality digital audio, MP3 compression commonly achieves 75 to 95% reduction in size. MP3 files are thus 1/4 to 1/20 the size of the original digital audio stream. This is important for both transmission and storage concerns. The basis for such comparison is the CD digital audio format which requires 1411200 bit/s. A commonly used MP3 encoding setting is CBR 128 kbit/s resulting in file size 1/11 (=9% or 91% compression) of the original CD-quality file.[7]