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This tutorial demonstrates how to reduce the file size of a Microsoft Word document containing images by adjusting the image size and quality settings. By accessing the advanced options in the File menu, users can modify the pixels per inch (ppi) setting to optimize file size without compromising image quality. This method is ideal for situations where high image quality is not essential, such as emailing or sharing files online. The default ppi setting is 220, but users can adjust it as needed to decrease the file size efficiently.