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In this video, the presenter introduces the SELECTEDVALUE function in DAX, highlighting its usefulness and versatility. Understanding how and when to use this function is crucial for optimizing its application in various scenarios. The tutorial demonstrates its utility in a report displaying product names, sales amounts, and product classes. Initially presented in a table format, the viewer learns how to transform it into a matrix. The significance of SELECTEDVALUE becomes evident as it allows for streamlined data presentation and enhances reporting capabilities in different visual formats. The video emphasizes the importance of grasping the fundamentals of DAX functions for effective data analysis.