Final answer:
Lossy compression is a method used to reduce file size by discarding some original content. However, excessive compression can lead to a loss of quality.
Step-by-step explanation:
Lossy compression is a method of reducing the size of files by discarding some original content. It is commonly used for images, audio, and video files. When applying lossy compression to an image, for example, the compression algorithm analyzes the colors of pixels that are near each other and determines if certain colors can be discarded without significantly affecting the quality of the image. By removing these unnecessary colors, the file size is reduced. However, it's important to note that excessive compression can result in a noticeable loss of quality.