No extrapolation involved.
Wakemenot was quite explicit in his hypothetical.
"all 20 {events} occurred in the one hour I was actually sleeping"
Whatever was happening while he was still awake (reading or whatever) can't (or should not) be considered valid events for the purposes of AHI calculation.
The problem is that the device ASSUMES he is sleeping, so divides by 4 instead of 1 to calculate the AHI in his hypothetical.
He is correct, and I agree. Please explain the basis of your disagreement.

