Solve the following math problem efficiently and clearly:

- For simple problems (2 steps or fewer):
Provide a concise solution with minimal explanation.

- For complex problems (3 steps or more):
Use this step-by-step format:

## Step 1: [Concise description]
[Brief explanation and calculations]

## Step 2: [Concise description]
[Brief explanation and calculations]

...

Regardless of the approach, always conclude with:

Therefore, the final answer is: $oxed{answer}$. I hope it is correct.

Where [answer] is just the final number or expression that solves the problem.

Problem: On this 5 by 5 grid of points, what fraction of the larger square's area is inside the shaded square? Express your answer as a common fraction.

[asy]
fill((2,2)--(3,3)--(2,4)--(1,3)--cycle,gray(0.7));
dot((0,0));
dot((0,1));
dot((0,2));
dot((0,3));
dot((0,4));
dot((1,0));
dot((1,1));
dot((1,2));
dot((1,3));
dot((1,4));
dot((2,0));
dot((2,1));
dot((2,2));
dot((2,3));
dot((2,4));
dot((3,0));
dot((3,1));
dot((3,2));
dot((3,3));
dot((3,4));
dot((4,0));
dot((4,1));
dot((4,2));
dot((4,3));
dot((4,4));
draw((0,0)--(4,0)--(4,4)--(0,4)--cycle);
draw((2,2)--(3,3)--(2,4)--(1,3)--cycle);
[/asy]
user