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In this Excel tutorial, the instructor demonstrates how to hide formulas in a worksheet. First, select the entire worksheet, then navigate to Format > Format Cells > Protection tab, and uncheck the "Locked" option. After clicking OK, select the cells that contain formulas by going to Home > Find and Select > Go To Special, and choosing "Formulas." Once the formula cells are selected, format them again by going to Home > Format > Format Cells. This process ensures that when a cell with a formula is clicked, the formula itself remains hidden, achieving the desired protection of sensitive data.