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In this Tableau tutorial, the instructor demonstrates the "hide data" function to manage gaps in visualizations, specifically focusing on a graph showing sales by year. An issue arises with a blank cell for 2014, creating an undesirable gap. Instead of excluding the data, which would filter it out and affect the grand total, the tutorial shows how to simply hide the data. By doing this, the grand total remains unchanged at 2.2 million dollars, while the gap is eliminated, allowing Tableau to continue performing calculations such as the difference in sales without displaying the omitted data.