• how do we use compensation method while multiplying?

Compensation method :  In this method the multiplication of two numbers is carried out by converting the smaller number into sum or difference of two numbers nearest to tens, hundreds, thousands, etc. 

For example, consider the multiplication of two numbers 754 and 92.

Here, the smallest number i.e., 92 is converted into nearest hundreds involving difference of two numbers 100 and 8 as:

754 × 92 = 754 × (100 - 8) 

= 754 × 100 - 754 × 8

= 75400 - 6032 = 69368