The bilinear transformation method converts an analog filter transfer function H(s) into a digital filter H(z) by substituting the complex frequency variable s with a function of z and the sampling period T. This substitution is s = 2/T times (z-1) over (z+1). This mapping preserves stability and causality but causes frequency warping, a nonlinear distortion of frequencies. To correct this, frequency pre-warping is applied before the substitution. The process starts by defining the sampling period T, then substituting s in H(s), analyzing frequency warping, applying pre-warping, and finally using the digital filter H(z) for filtering signals. Variables like T, s, and the filter functions change step-by-step as shown in the execution table and variable tracker. Key points include why the substitution formula is used, what frequency warping is, and how pre-warping fixes it. The visual quiz tests understanding of these steps and variable changes.