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This lecture covers the inverse Z transform, including its definition, main properties, and application in linear digital systems. It explains the initial value theorem and the decomposition of signals in linear systems based on polynomials. The instructor demonstrates the calculation of the inverse Z transform through examples and integration by residues, emphasizing the importance of understanding the contour in the complex plane for convergence. Additionally, the lecture explores the relationship between poles, zeros, and residues in signal processing, providing insights into causal signals and the quotient of polynomial division.