__________  includes compressing data in order to create high image quality using a smaller data rate.

The process you're referring to is known as "Data Compression". This involves reducing the size of data files, in this case, image files, to save storage space or speed up transmission. Here's a step-by-step explanation:

1. The data compression process begins with the input of raw, uncompressed data. In this case, it's an image file.

2. The compression algorithm then analyzes the data to find repetitive or redundant information. For images, this could be areas of the same color or similar patterns.

3. The algorithm then replaces these repetitive pieces of data with shorter representations. For example, instead of storing "blue, blue, blue, blue", it might store "4x blue".

4. This compressed data is then outputted, resulting in a file that takes up less storage space or can be transmitted more quickly.

5. When the image is needed, a decompression algorithm is used to expand the compressed data back into its original form. This is done in such a way that the image quality remains high, despite the smaller data rate.

So, in summary, the process that includes compressing data to create high image quality using a smaller data rate is known as "Data Compression".