Equation 7.7 is given below: $$\hat\rho = \frac12(I +n_x(\hat X)+n_y(\hat Y)+n_z(\hat Z)) $$
Where $I$ is the identity matrix and $\hat X,\hat Y,\hat Z$ are Pauli matrices.
Now my attempt of this was to first square every term inside the bracket to get $$\hat\rho^2$$ When doing this, all Pauli matrices then convert into identity matrices. So if you were to add all terms together you would get a 2x2 matrix: \begin{bmatrix}4&0\\0&4\end{bmatrix} But I'm unsure of how the matrices will cancel out to give the final result?