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In this tutorial, Jimmy from Microsoft Store explains how to create a drop-down list in Excel. To start, identify the location for the drop-down and the options to include. Taking an example from a spreadsheet with employees in Column A, he shows how to assign departments in Column B. First, highlight the empty spaces for the drop-downs, then access the Ribbon, select Data, and choose Data Validation. In the Data Validation menu, select "List" under Allow, then click the arrow next to the source field to highlight the cells containing the options (D2 through D11). After confirming with Enter and OK, users can now select the appropriate department for each employee from the drop-down list in Column B.