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In this Excel tutorial, the instructor demonstrates how to hide formulas in a worksheet. To begin, select the entire worksheet, go to 'Format', select 'Format Cells', and in the 'Protection' tab, uncheck the 'Locked' option. After clicking 'OK', use the 'Find and Select' feature under the 'Home' tab to access 'Go To Special' and select 'Formulas' to highlight all cells containing formulas. The tutorial guides you through formatting these selected cells to enhance privacy regarding the displayed formulas. This ensures that when someone clicks on a cell with a formula, the formula won't be visible.