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In this tutorial, software engineer Matthew Pearce demonstrates how to create drop-down lists with multiple options in Excel. He explains two methods: one for options on the same page and another for options on a different page. Using an example of ice cream scoops (single, double, triple) in flavors (strawberry, vanilla, chocolate), he starts by selecting the desired cell for the drop-down list. He then navigates to the data validation feature, specifically the settings tab, to configure the drop-down list on the same page. Further details regarding the second method and the complete data validation process are provided in the tutorial.