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This video tutorial demonstrates how to create a table of contents in a word document. The presenter adds random text to the document using the rand() command and then adds headings for the table of contents. The headings are categorized by levels, with level 1 being Introduction. Other levels are also defined, such as level 2 and level 3. To create the table of contents, the presenter assigns Styles to the headings, making it easy to generate the table of contents.