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In this tutorial, 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 list using options on the same page and another for using a list from a different page. As an example, he uses options for ice cream sizes: single, double, and triple scoops of strawberry, vanilla, or chocolate. To create a drop-down list on the same page, he selects the desired cell, navigates to the data validation feature, and ensures the settings are properly configured to display the options.