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This lecture covers the design of reduced-order observers and output feedback controllers in multivariable control systems. Topics include the design of observers with order less than n, stability criteria, and the separation principle. The instructor explains the dynamics of the system, the use of observers with no delay, and the design of state feedback controllers. The lecture also delves into the reconstruction of the full state, change of coordinates, and the design of estimators. Various observer designs, such as Luenberger observers and filters, are discussed, along with their applications in satellite attitude control and system dynamics.