A fixed-point method that uses only four bits can represent only 16 values. This is described as a limit on its precision.
In computers, a bit is the most basic unit of information employed during the transmission of digital data.
The combination of 4 bits generates 16 different data to be used during digital transmission.
The fixed-point computing method fixes the points of a given function to obtain a limited number of combinations (fixed-point iterations).
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