From Sue Chastain,
Your Guide to Graphics Software.
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Definition: To estimate values between two known values. In regard to graphics software, interpolation is a process where the software adds new pixels to an image based on the color values of the surrounding pixels. Interpolation is used when an image is upsampled to increase its resolution. Resampling through interpolation is not ideal and often results in a blurry image.

In reference to scanner and digital camera specifications, the interpolated resolution is often listed along with the device's optical resolution. In this situation, the optical resolution is the true measurement of what can be captured and the interpolated resolution should be disregarded as a purchasing factor.

Graphics Glossary

Also Known As: resampling, upsampling, resample, interpolated

Alternate Spellings: interpolasion