This example shows a variable 'status' declared with literal types "success" or "error". It is assigned "success". The 'if' condition checks if 'status' equals "success". When true, the code inside the 'if' runs, printing "Operation succeeded". This narrows the type of 'status' to the literal "success" inside that block. If the condition were false, the 'else' block would run, meaning 'status' is "error" there. The execution table traces these steps, showing the variable value, condition result, branch taken, and output. The variable tracker confirms 'status' stays "success" throughout. Key moments clarify how TypeScript uses these checks to narrow types and why branches run. The quiz tests understanding of variable values and condition results at each step. This helps beginners see how literal types and narrowing work in practice.