Mu-Law is a companding algorithm used primarily in telecommunications to optimize the dynamic range of audio signals. It compresses the amplitude of audio signals, allowing for better transmission quality by reducing the impact of noise and distortion. This technique is particularly useful in telephone systems, where maintaining clear audio quality is essential. The Mu-Law algorithm works by applying a logarithmic compression to the audio signal, which means that quieter sounds are amplified more than louder sounds. This results in a more uniform audio level, making it easier to transmit and process. It is widely used in digital signal processing and is a standard in PCM (Pulse Code Modulation) systems.