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In this video tutorial, the presenter demonstrates how to create a table of contents in a Word document. They start by adding random text using the rand() command and then proceed to add headings for the table of contents. The headings are organized into different levels, such as level 1, level 2, and level 3. To create the table of contents, the presenter explains that you need to assign styles to the headings, with level 1 headings being designated as the top-level heading. By following these steps, you can easily generate a table of contents for your document.