An important part of how lossy audio compression works is by removing data in ways humans can't hear, according to a psychoacoustic model; the implementer of an encoder has some freedom of choice in which data to remove (according to their psychoacoustic model).
A lossless audio coding format reduces the total data needed to represent a sound but can be de-coded to its original, uncompressed form.
A lossy audio coding format additionally reduces the bit resolution of the sound on top of compression, which results in far less data at the cost of irretrievably lost information.
[3] Adaptive DPCM (ADPCM) was introduced by P. Cummiskey, Nikil S. Jayant and James L. Flanagan at Bell Labs in 1973.
[6] Initial concepts for LPC date back to the work of Fumitada Itakura (Nagoya University) and Shuzo Saito (Nippon Telegraph and Telephone) in 1966.
[7] During the 1970s, Bishnu S. Atal and Manfred R. Schroeder at Bell Labs developed a form of LPC called adaptive predictive coding (APC), a perceptual coding algorithm that exploited the masking properties of the human ear, followed in the early 1980s with the code-excited linear prediction (CELP) algorithm which achieved a significant compression ratio for its time.