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In this video tutorial, the presenter demonstrates how to reduce the size of a Microsoft Word file containing images. The process is useful when the file size is too large for emailing or other purposes and image quality is not a top priority. By adjusting the image resolution settings in Word, specifically the pixels per inch (ppi), users can reduce file size without significant loss of quality. It is recommended to select the appropriate ppi based on the intended use of the document, such as printing or casual viewing. By following these steps, users can effectively decrease the size of their Word files for better usability.