The document discusses how to draw conclusions by using information that is already known combined with details learned from a story or situation. It provides examples of short passages and asks the reader to draw a conclusion based on contextual clues. In the examples, conclusions are correctly drawn that a hairy four-legged creature that likes walks is a dog, a round food covered in sauce and topped with meats is pizza, and a beach setting with people, seagulls, waves and smells of salt and food implies the location is a beach.