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In this tutorial, the instructor demonstrates how to use a drop-down menu to switch between different charts in Excel. By adding this level of interaction, users can easily switch between viewing profit, expenses, and sales data on separate charts. To create this feature, you will need a table, separate charts for each data type, a combo box form control for the drop-down menu, and the camera tool for visual representation. Follow the steps outlined to create a dynamic chart-switching feature in Excel.