This person did something wrong and I do not know what it is :( Please help this is for points!
Answer:
It is, indeed, a reduction. But, the scale factor of the dilation should be a fraction instead of a whole number, since the shape has shrunk.
Instead of [tex]\frac{KN}{K'N'}[/tex], it should be [tex]\frac{K'N'}{KN}[/tex]. That would make it (4 - 2) / (8 - 4) = 2 / 4 = 1/2.
Hope this helps!