def is_supported_compression(file_extension: str) -> bool:
    """Determine if the given file extension indicates a compression format that pandas can handle automatically.

    Args:
        file_extension (str): the file extension to test

    Returns:
        bool: True if the extension indicates a compression format that pandas handles automatically and False otherwise

    Notes:
        Pandas can handle on the fly decompression from the following extensions: ‘.bz2’, ‘.gz’, ‘.zip’, or ‘.xz’
        (otherwise no decompression). If using ‘.zip’, the ZIP file must contain exactly one data file to be read in.
    """
    return file_extension.lower() in [".bz2", ".gz", ".xz", ".zip"]