Solving a system of equations using Newton's method

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The following paper provides a way to solve a system of equations using Newton's method. (The theorem begins at the end of page 2.)

I can't understand the assumptions made in the proof: enter image description here

Basically, what I want to know is, how does the author get to this assumption?

$$ \frac{M}{2}*||T_{u}|| + N < K < 1 $$ where M is the Lipschitz constant, $T_{u}$ is the pseudo-inverse of the jacobian at u, and N comes from (11).

Based on these assumptions, the rest of the proof is clear to me. But the basic assumptions aren't. Any help would be greatly appreciated! :)

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Constants:

  • $\alpha$ tells something about the initial residual (or the first Newton step)
  • $N$ is the Lipschitz constant of $u \mapsto T_u$
  • $K$ yields an uniform upper bound on the pseudo-inverses

Assumptions:

  • $h=\alpha K<1$: the initial residual is small compared to the bounds of the inverses
  • $\frac12 M \|T_u\|+N<K<1$ is most likely the right form of an inequality as later used in the proof ;)

These assumptions seem pretty standard for Newton-Kantorovich results.