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In this video tutorial, the host, Sofiane, explains how to set up formula fields in docHub for simple or advanced calculations. The example used involves setting up fields for customers to choose a car model, color, booking duration, and calculating total payment. A drop-down menu is used to allow users to choose between car models X3 or X5. Radio buttons are not utilized as they do not allow assigning values to each option. Stay tuned to learn how to calculate dates and numbers in docHub.