The Compensation method is an approach to addition and subtraction equations using mental calculations. It involves rounding numbers to convenient values to ease the arithmetic process.

To use the Compensation method for addition or subtraction:

- Identify one number to adjust by rounding it to a nearby, more convenient value.
- Compensate for the adjustment by making an opposite adjustment to the other number in the equation.
- Add or subtract the adjusted numbers to find the solution.

For example, let's consider the addition equation 38 + 45:

- Begin with 38 because it is closer to its rounded value.
- Adjust 38 by adding 2 to make it a round number of 40.
- To compensate for the adjustment, subtract 2 from 45, resulting in 43.
- Add the adjusted numbers: 40 + 43 = 83, which is the final sum.