This example shows how to define a function named Greet in PowerShell. First, the function is defined with a parameter called $name. This stores the function in memory but does not run it yet. When we call Greet with the argument 'Alice', the parameter $name receives the value 'Alice'. Inside the function, the string "Hello, $name!" is evaluated by replacing $name with 'Alice'. The function then returns this greeting string. Finally, the output is printed as 'Hello, Alice!'. Variables and steps are tracked to show how the function works step-by-step.