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This lecture covers the calculation of the step response of a system, system identification from step response data, and methods for optimizing model fit. It also delves into the concept of system stability, explaining BIBO stability, the relationship between impulse response and stability, and the Routh-Hurwitz stability criterion. The instructor demonstrates how to determine system stability using the Routh table method, emphasizing the importance of understanding stability for designing controllers. The lecture concludes with a discussion on active suspensions and the challenges of stabilizing cameras on moving platforms like drones and satellites.