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In this tutorial, software engineer Matthew Pearce demonstrates how to create drop-down lists in Excel. He outlines two methods: one using options located on the same page and the other using options from a different page. Using the example of ice cream scoops (single, double, triple), he begins by selecting the cell for the drop-down list and navigating to the Data Validation tab. He highlights the importance of ensuring the settings are correctly configured for creating the drop-down menu. This simple process enables users to input varying options effectively within Excel.