1) The document discusses quantization and pulse code modulation (PCM) in voice signal encoding. PCM assigns 256 possible values to digitally represent analog voice samples, divided into chords and steps on a linear scale.
2) A logarithmic quantization scale is better than a linear one for voice signals, as it allocates more quantization steps to lower amplitudes prevalent in speech. This compression and expansion technique is called companding.
3) Quantization error occurs when samples with different amplitudes are assigned the same digital value, distorting the reconstructed waveform. Companding helps maintain a higher signal-to-noise ratio especially for low-amplitude speech segments.