This example shows how Ruby's inherited hook works. When the Base class defines self.inherited, Ruby calls this method automatically whenever a new subclass is created. In the example, when Child < Base is defined, Ruby calls Base.inherited(Child), which prints "Inherited by Child". This lets you run code right when subclasses appear, such as adding methods or logging. The execution table traces each step: defining Base, defining the inherited method, creating Child which triggers the hook, and finishing subclass creation. Variables track class definitions before and after subclassing. Common confusions include why the inherited method runs automatically and how you can modify the subclass inside it. The quiz checks understanding of when the hook runs and what output it produces. The snapshot summarizes the key points for quick recall.