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The stress is concentrated in the notch's cross-section, because the cross-sectional area is smaller there than that of the intact cross-section.
In the case of components comprising composite cross-sectional areas, the parallel-axis theorem can be used to determine the area moments of the total cross-sections.
To do so, it is first necessary to determine the coordinates (in y- and z-directions) of the centre of gravity of the cross-sectional area, which are called the first moments of area.