Beat frequency occurs when two sounds waves of slightly different frequencies interfere. The beat frequency is calculated as the absolute value of the difference between the two sound wave frequencies. In the example provided, two tones of 230 Hz and 235 Hz are played together, resulting in a beat frequency of 5 Hz, calculated as the absolute value of 235 Hz - 230 Hz. While both Jessica and Simon used the correct formula, only Jessica accounted for the absolute value, making her answer correct. Beat frequencies above 30 Hz are heard as a tone, while those between 20-30 Hz are heard as beats. Lower beat frequencies down to 1 Hz can still be detected.