1. An apparatus for selecting color prediction mode during Bayer encoding, comprising: (a) a computer processor configured for receiving color pixel data of an input Bayer image containing different color pixels associated with a plurality of different pixel group numbers; and (b) programming executable on the computer processor configured for performing steps comprising: (i) determining dynamic range between a selection of multiple samples to determine if a large spatial edge exists; (ii) reducing sample resolution to a given number of bits in a reduced sample resolution as a code word for said multiple samples; and (iii) determining if said code word for said multiple samples at the reduced sample resolution is either (1) an intra-color exception case in which case inter-color prediction is selected, otherwise selecting intra-color prediction, or (2) an inter-color exception case in which case intra-color prediction is selected, otherwise selecting inter-color prediction.