I'm working through Quantum Computing for Computer Scientists (Yanofsky & Mannucci, 2008), and am getting a little confused about Observables. From what I understand an observable is a question represented by a hermitian matrix. But that's as far as it goes. When we use an observable to make a measurement we obtain a real result, which can change the state space $|\Psi\rangle$. There is mention in the book that "after an observation" (presumably after a measurement is taken) then the result should be an eigenvalue, and the state of the system should collapse into the state which is the eigenvector corresponding to that eigenvalue.
Then, in example 4.3.1 on p.126 the authors use the observable $$\Omega=\begin{bmatrix}-1&-i\\i&1\end{bmatrix},$$ which they state has eigenvalues $\lambda_1=-\sqrt{2}$ and $\lambda_2=\sqrt{2}$, with corresponding eigenvectors $|e_1\rangle=[-0.923i,-0.382]^T$ and $|e_2\rangle=[-0.382,0.923i]^T$.
It goes on to say "now, let us suppose that afer an observation of $\Omega$ on $|\Psi\rangle=\frac{1}{2}[1,1]^T$, the actual value observed is $\lambda_1$. The system has "collapsed" from $|\Psi\rangle$ to $|e_1\rangle$.
I'm finding it difficult to understand this. Do the authors mean to perform a measurement, i.e.
$$\Omega|\Psi\rangle=\begin{bmatrix}-1&-i\\i&1\end{bmatrix}\frac{1}{2}\begin{bmatrix}1\\1\end{bmatrix}= \begin{bmatrix} -\frac{i}{2}-\frac{1}{2} \\ \frac{i}{2}+\frac{1}{2} \\ \end{bmatrix} $$
But then how have we observed $\lambda_1=\sqrt{2}$ ?
I think I've got the wrong end of the stick because the authors say "now, let us suppose that after an observation...," so maybe there is no calculation to be made, but it's very confusing.
Can anybody help me understand this?