In practice, oversampling is implemented in order to reduce cost and improve performance of an analog-to-digital converter (ADC) or digital-to-analog converter (DAC). When oversampling by a factor of N, the dynamic range also increases a factor of N because there are N times as many possible values for the sum. However, the signal-to-noise ratio (SNR) increases by formula_1, because summing up uncorrelated noise increases its amplitude by formula_1, while summing up a coherent signal increases its average by N. As a result, the SNR increases by formula_1.