Adding more bits makes each step size (quanta) smaller, so the maximum error is smaller.

Looking at the error plots for 3-bit and 5-bit ADCs illustrates this fact.
As we will see in our discussion of dynamic performance parameters, the amount of quantization noise depends upon the area under the error curve.
This area decreases with increasing resolution.
Therefore, higher resolution converters offer better noise performance.
It's True! All of this is equally true of DACs and ADCs.
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