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This video explains how settlement calculations are done in practice by defining compressibility coefficients using the e versus effective stress graph. The coefficient of volume compressibility (m/v) is defined as Δe/Δstress * 1/(1+e), representing volume change per unit volume per unit increase in effective stress. The consolidation settlement equation is SC=H0*Δe/(1+e). By multiplying both sides by Δstress, we get the equation SC=H0*Δe*Δstress/(1+e*Δstress). This is known as the coefficient of consolidation.