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In this tutorial, the focus is on the important technique of re-categorizing values using the "if" function in Excel. The example involves categorizing types of fruit as apples vs. everything else, and then all fruits vs. all vegetables. By using the "if" function, new variables are created in columns B and C based on the specified criteria. The step-by-step process of using the "if" function requires a logical test to determine the condition for re-categorization. Mastering this technique is crucial for efficiently manipulating and analyzing data in Excel.