What happens when a fixed-point representation exceeds its range due to arithmetic operations?

When a fixed-point representation exceeds its range, it may lead to errors, overflow (result too large to be represented), or underflow (result too small to be represented).

For example, if you add two positive numbers and the result exceeds the maximum positive value that can be represented, an overflow occurs. In such cases, the result cannot be accurately represented within the given format, leading to potential errors in subsequent computations. Similar to overflow, underflow leads to inaccuracies as the result falls outside the valid range of values that can be represented