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This lecture covers the representation of integers using sign-and-magnitude, one's-complement, and two's-complement notations. It explains how addition and subtraction are performed in these systems, highlighting the advantages of two's complement over sign-and-magnitude. The lecture also introduces the concept of excess-N representation and discusses overflow and underflow scenarios. Additionally, it delves into multiplication and division methods for integers, comparing binary division with the classic pen-and-paper method. Finally, it explores fixed-point and floating-point representations of real numbers, emphasizing the IEEE 754 standard for floating-point numbers.