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Matthew Pearce, a software engineer, demonstrates how to create drop-down lists with multiple options in Excel. He explains two methods: one for creating a drop-down list using options on the same page, and another using a list from a different page. For the example, he uses types of ice cream scoops (single, double, triple) and flavors (strawberry, vanilla, chocolate). To create a drop-down list on the same page, he selects the desired cell, navigates to the Data Validation tab, and adjusts the settings accordingly. He does not complete the tutorial in this excerpt, but this sets the foundation for the full instructional video.