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Kevin from Microsoft explains how to create drop-down lists in Microsoft Excel. He emphasizes the importance of using drop-down lists when you want others to select specific values in a spreadsheet. He provides a step-by-step guide on setting up drop-down lists in Excel, highlighting how easy it is to do so. Kevin demonstrates the process on his PC using the latest version of Excel from Office 365, but notes that drop-down lists have been a feature in Excel for a long time.