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This lecture covers the fundamentals of source coding, including entropy, data compression, and the Source Coding Theorem. It delves into the concepts of regular and stationary sources, providing examples like the Sunny-Rainy and Weekly-Coin-Flip sources. The lecture also explores binary prefix-free codes for positive integers and the Elias coding schemes. Additionally, it touches on universal source coding and practical algorithms like Lempel-Ziv (LZ77, LZ78). The class concludes with a challenge involving determining the minimum number of weightings to identify a different ball among 14 billiard balls.