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In this Microsoft Word tutorial, the presenter demonstrates three methods for creating a checklist. They begin by adding a title at the top of the document, utilizing the font adjustment tools in the Home tab to make the title bold, increase its size, center it, and underline it. The video explains that any text typed after returning will retain the formatting changes unless reverted to the default. To reset formatting, users can click the "clear formatting" icon in the Home tab. After setting the title, the presenter prepares to type the first item of the checklist and mentions the addition of a checkbox next to the checklist item.