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In this video tutorial, the presenter demonstrates how to reduce the file size of a Microsoft Word document containing pictures. By adjusting the image size and quality settings, specifically the pixels per inch (ppi), users can decrease the file size without sacrificing overall image quality. This method is useful for situations where reducing the file size is more important than image fidelity, such as for emailing or other purposes where super high quality is not necessary. By following the steps outlined in the video, users can effectively decrease the file size of their Word document.