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In this video tutorial, the presenter demonstrates how to reduce the file size of a Microsoft Word document that contains numerous pictures. This is helpful if the file is too large to email or use for other purposes. By adjusting the image size and quality settings in Word, particularly changing the pixels per inch (ppi), the file size can be reduced without compromising image quality. The presenter recommends using higher ppi for printing purposes and lower ppi for general use. Adjusting these settings can help shrink a large file size, making it easier to share or use for various purposes.